Learning how to write a business plan is often the first step of any action you need to take if you want to launch a venture or improve an existing one. Even Though, it doesn’t mean having one will set you off for success. But it equips you with directions and guidance. The following guide will surely be an addition to your path towards launching or just running your business in case you don’t have any.
What Makes a Good business plan?
Typically, a good plan will explain in detail all aspects of the business. It is a combination of operational steps that describe how your company plans to grow, make money, spend money, survive, and be profitable. Hence, it is expected to at least contain information regarding your financial forecast, customer acquisition strategy, marketing strategy, sales strategy, human resources. It is a general wisdom that a good business stretches over the course of at least 5 years.
What are the 3 main purposes of a business plan?
The document is at the cornerstone of any successful venture. It is a critical part of your entrepreneurial journey. That is because, it clearly explains your growth strategy, and provides valuable information about your future financial needs. That is why in most cases to obtain a loan or financing from an investor or a lender your plan business is required.
To summarize, the document :
- Explain how to intent to grow your business
- Provides information on your future income and expenses over a period of at least 3 years
- helps you raise funding.
Who is likely to read a business plan?
A plan is a strategic document. It basically exposes your entire business’s vital information. As a result, only the company’s top executive can get access and all the company’s investors and lenders.
How do I write a simple business plan?
To write a good plan here are some key pointers: be clear and concise, provide supporting documents, clearly point out your competitive advantage, be objective, and make to have enough data to back all your assumptions.
Use the following tools to help you write a good business plan.
The funnel is called the Pirate Funnel, as the first letters spell out AARRR for Acquisition, Activation, Retention, Referral, Revenue.
Learning how to write a good document is key. However, you should not spend too much time looking for the perfect plan. Always keep in mind a business plan evolves as you execute your plan. Also, too much planning kills your business. Even though, it is the document required by most investors or loan institutions when you are looking for funding.
You can divide your plan into blocks and prioritize which block to start first base on your market requirement and the stage of your business.
For example, if you are looking to gain more insight into your persona, work on the block below:
If you want to further have clarity on the value you create for your persona, use the block below. More information: https://www.strategyzer.com/canvas/value-proposition-canvas
Perhaps, you are more interested in refining your business model instead: https://www.strategyzer.com/canvas/business-model-canvas
How many pages should be in a business plan?
Usually, as recommended by many experts it should be at least 30 to 50 pages. However, don’t be surprised to find a shorter version or even longer version depending on the business perspective.
Put everything together in this simple word template to visualize in a nutshell your future or current venture.
But keep in mind no matter what your current goals are, never forget a business plan is a moveable block, not a rigid stone.