10 Tips to Create the Perfect Business Plan
10 March, 2023
You have a business idea and the required finances. Now all you need to do is to make your business known to your target audience or intended stakeholders. For that, you need to know how to draw up a business plan, which is not the same as a business idea. Let’s say you want to attract some of the top talent in the market for your new venture; providing them with a business plan helps them understand your idea better. Or perhaps, you want to apply for a business loan. A bank will only consider your application if they are familiar with your venture and the direction it is headed in. You can communicate these effectively with the help of a solid business plan. Now that we have established a few important reasons why you need a business plan, let’s look at how you can get it done. To that effect, here are 10 tips on how to make a business plan.
What is a business plan and why do you need one?
A business plan is a document, in any form, that tells the audience about your company and its objectives, product or service offerings, top management personnel, and steps taken to achieve goals. When you create a business plan, you show that you are, indeed, serious about your business, and not simply treating it as a fleeting idea.
You need to show to your investors or bank a business plan when seeking funding for your ventures. However, the process doesn’t end there for established companies too must keep updating their business plans so that existing employees stay aware of the happenings. After all, documenting your company’s progress will help you position your business in the marketplace. Moreover, a well-thought-out business or marketing plan will help you strategise for the company’s future.
How to draft a business plan
If you need some advice on how to build a business plan, here are 10 tips that will help you:
Focus on conveying your passion
A business does not work without an audience. For attracting investors, you need to believe in your business; only then will you be able to convince them to invest. Your employees, who are your support system, must also know how they figure in the bigger scheme of things for this will help them take a personal interest in the running of your business.Research competition
Think about how your business differs from what your competitors do and put that information down into your plan. Try to target markets where your business will stand apart from the rest.Back-up your business plan
If you write that you have a solid team of managers, add their resumes. If you make promises that your product will achieve a particular objective, you must provide concrete proof through numbers or market research.Ensure the financial information is accurate
While expenses are often more predictable than sales, your business plan must include both. You can seek assistance from an accountant for finance-related sections, such as the cash-flow statement.Be realistic about time
If you claim a product takes a certain number of days to manufacture, investors will be unhappy if that time frame goes beyond what you specified. Therefore, assume things will take a longer time to move than what you originally anticipated.Be conservative with financial projections
While having an optimistic view of business is crucial, it is equally important to be conservative about money. For instance, saying that your business will have 15% market share in the next two years is more believable than promising 50% in a single year.Add visual appeal
Reading through pages of text can feel dull. Add images, graphs, flowcharts, and infographics to make your business plan readable.Avoid jargon
More often than not, your investors are going to be people who do not necessarily belong to the same industry as you. Hence, it is advisable to use simple words as much as possible.Get feedback
Do make it a point to get feedback from your friends and family. A fresh perspective will help you improvise your business plan.Customise the plan according to your readers
It is not mandatory to have a single format of business plan. Customise the document based on your readers and prospective investors. If you are attracting investors, they must know how you plan to pay them back and give them good returns. If you are hiring, your employees must know the benefits of working for you.
Knowing how to create a business plan for both a startup or an established business is crucial as it will go a long way in smoothening out the road ahead for you and your stakeholders. Best of all, you can make your plan at a nominal cost simply by following the tips in this article.
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*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. HDFC Bank recognises the challenges entrepreneurs face while acquiring capital. Thus, HDFC Bank has created MyBusiness, a one-stop solution that gives you easy access to loans, digital solutions and provides you with the essential knowledge you need to run your business. With HDFC Bank MyBusiness, you can scale up, expand your operations, and nurture your business.
