Your business plan shouldn’t simply be a statement of what your business is looking to achieve, it should also outline how you are going to do it.
Don’t fall into the common trap of focusing on the profit you’ll make once you’re up and running. Instead, look at how you will maintain your cashflow – who are your customers and how will you reach them? How will you ensure a steady income throughout the year? What hard yards will you put in to sell your business’ proposition and keep the fundamentals ticking over nicely?
The importance of cashflow should make it an integral part of your business plan.
You are writing a business plan, not a peer-reviewed scientific thesis or a work of literary greatness. Keep it to the point and reasonably succinct.
It should cover the problem your business seeks to solve, how you will do it, how you will get your money, the people that will drive it and the goals of the business. Don’t over complicate this by being intimidated by this process.
A competitive analysis is crucial to any decent business plan. Failure to outline your marketplace, its inhabitants and, vitally, what you will offer as a point of difference to them, will stymie your chances of being taken seriously.
Worse still, an investor may say, “I already invest in a business, just like yours”. Don’t ever put yourself in this situation.
You may think acronyms or business terms will impress the reader of your business plan, but they won’t. Investors want a clear summary of the means, methods and goals of your business, put to them in plain English. Even if you are starting a very technical business, don’t fall into this trap.
Your business plan needs to be a living, breathing document. It should not only set out your goals at launch, it should help you keep on track as you build the business. A business plan is a good reminder of the goals and ethos of the start-up you wish to create.
Don’t be afraid of amending your business plan as you progress, but don’t toss it to one side once you’re up and away.
