7 Helpful Strategies for Writing a Business Plan
There are many components that go into writing a business plan for a small business, and it is important to make each one a priority. Take advantage of National Write a Business Plan Month and learn how to write a business plan with these seven tips.
How to Write a Business Plan
1. Create a Budget for Your Business
If your business doesn’t have a budget, it will be difficult to write an effective business plan. Having a budget will be necessary in order to run a financially responsible business, and make sure that you have funds to pay bills, employees and still have enough money to improve other aspects of your company.
2. Be Action Oriented
Want your business to be taken seriously? Provide specific details on how you’re going to operate. Detail what you’ll provide to customers, who will do it and how much it will cost. When writing a business plan, explaining exactly how your business works will help you formulate a plan that will deliver strong results.
3. Be a Show Off
Writing a business plan offers the opportunity to brag about what sets your company apart from competitors. Use it as a platform to explain what makes your company unique, and how your services differ from other businesses.
4. Consider Your Customers
Without loyal customers, your business won’t get very far. When writing a business plan, keep in mind how it will serve your customers’ needs. If that is one of your target goals, your business will succeed long term.
5. Back It Up
Do your research and provide confirmed data in your business plan. If you intend to share this with investors, you’ll need to include information that will make them want to fund your company. In addition, applying for working capital may require you to provide figures such as your gross sales, credit score and other figures. A business plan for a small business that includes specific figures related to your company will be better received, and you’ll never know when you may need it!
6. Get Feedback
While you may be hesitant to share your business plan with people that don’t work at your company, an outsider will be able to objectively point out aspects that may need revising. Find someone with small business experience that you trust, and see if they can offer constructive criticism.
7. Update Your Business Plan Often
Even after you finish writing a business plan, you’ll still need to revise it in the future. Updating your business plan often will be helpful for various situations as a small business owner. For instance, if you’re applying for working capital, you’ll want to know how you will utilize the funding, and the amount of financing that is necessary.
Learning how to write a business plan will help your business be prepared to apply for working capital. By following these seven steps, you will be able to create a well-rounded, informational business plan that will help you accomplish your business goals. At Fora Financial, we love to see small businesses that are proactive about their company’s financial aspirations, especially when they are applying for working capital. Having a strong business plan will make your role as a small business owner much easier, so get to work!
Do you have your own tips to share during National Write a Business Plan Month? Let us know in the comment section below.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.