Will you be kick-starting your own business very soon and need tips on how to write an effective business plan? Have you been having a hard time putting together an effective business plan for your business ventures? If yes, to be discussed in this post are confirmed tips on how to put together a working and wonderful business plan that will paddle your business to the promised land.
As a general rule, drafting an efficient business plan is one of the important things an entrepreneur must do if he wants his business venture to see the limelight and to grow exponentially. Research shows that only 5% of new startups live beyond five years and this is a result of their inability to take the risk and put together an effective business plan from inception.
Be that as it may, it is important you know that a business plan wouldn’t guarantee your business venture success in the first place, but rather it will contribute immensely in evaluating your venture needs and wants strong and weaker sides, and it will enhance you in understanding its competitive nature in the labor market and come up with an efficient, strong and adequate problem-solving strategies.
Essentially, it is very important you know that there is no most desirable plan template in existence hence, the volume of a business plan, its depth, contents, service to render, etc. vary from one venture to another or from one business situation to another the other. Before we go on, learn the Difference Between a Business Plan and a Business Proposal.
How to Write an Effective Business Plan
There is no time limit as to the number of days you can use to come up with an efficient business plan. Depending on how versed you are in writing it, you can Write an Effective Business Plan in 3 days, 5 days, 7 days, 12 days, etc.
But if you carefully read this article and understand its flows, I guarantee you that within 6 days, you should be able to come up with an everlasting business plan that will move your business to the promised land.
1. Come up With an Interesting Title / Heading
The first thing to do when writing a business plan is to craft an interesting title that will sum up the whole content of the plan. This is so because, as an entrepreneur who may have the intention of seeking funding from business investors, you will need a plan with a wonderful title that will capture their attention on the spot.
Plus, a wonderful business plan headline should be something powerful and concise. So crafting an amazing headline depends greatly on the kind of purpose you want the plan to serve. In fact, you can seek samples and templates from your competitors or other business owners who are not in your business direction.
2. Define Your Target Audience
Do you know who your target audience is? Do you know where they are and where to find them? Do you know what they want and what they desire the most? All these questions have to be answered accordingly if you want your business plan to be effective.
So for you to answer the above-poised questions correctly, you will have to conduct more detailed feasibility research on your target audience. In fact, it is encouraging that you visit your to-be competitors and ask them a few questions in such regard. Since they have passed that stage, their sincere response will help you greatly in mapping out a wonderful business plan.
Before and while writing your business plan, you must know what your target audience is. Define them and what you will be offering. Don’t forget that your potential and seasonal customers are to be in the middle of your business plan. Everything you are planning, you are planning it for them. Hence, define the class of people they are, where to find them, what do they want, and how your business venture will be of help to them. Learn also, The Difference Between a Business Idea and a Business Opportunity
3. Map out a Plain Structure
Since the business plan, you will be writing is not meant for your own consumption only, it is expected of you to come up with a readable text. Pay attention to everything you write in your plan, make them clear and concise, use bullet lists, give detailed explanations that were necessary for each, use charts, have different subheadings for various points, etc.
Writing your business plan in such a manner will make the whole business plan appealing and meaningful in the eye of the investors. You may, however, consider the following effective writing tips to enhance your drafting skills:
Let your opening lines be powerful and captivating. This is so because opening lines will determine whether the plan will be a success or not. So endeavor to create an interesting hook that will capture the readers’ attention.
Define Your Business Purpose
It is also important to write out an effective thesis that will serve as the central idea of the business plan. It should without any prejudice succinctly explain the purpose of your writing.
Map Out an Outstanding Body
Having defined the purpose of drafting the business plan, it is very pertinent that you have a valuable body. Let the body of your business plan develop your venture thesis statement one after the other. Identify the various problem or challenges the business can face along the line and provide varieties of strategies you will implore to solve them all.
Express Your Feelings
At the of the business plan, it is ideal if you can conclude with a firm belief and inspiration. Express your feelings that you believe firmly that the business plan is going to work out well as planned since it is 100% efficient and effective and it will take your business to years of growth and concrete achievements.
4. Identify Your Business Problem and How to Tackle It
One of the important aspects of writing an effective plan is Identifying the probable problems or challenges your proposed business is likely going to face in the competitive market. Knowing all these before you set out will give you confidence that you can do it successfully.
To identify the possible problem or challenges your proposed venture may face and offer a lasting solution to them. As an entrepreneur looking forward to kicking start his own business, this is like a piece of advice to you. Pay attention to it.
5. Set a Specific Goal
Up next in your business plan having identified the probable problem the business will likely face and solutions to the problems, the next thing expected of you is to set a clear target and the specific goals the business wants to achieve. After all, there is no that entrepreneur on earth who will start up a business without the intention of making it big.
So, therefore, if your ambition and personal dreams are huge or much bigger, that is a great thing. Such ambition will always motivate you to work very hard. But however, it is very important you know that big dreams and huge ambitions don’t guarantee a successful business and they don’t symbolize a blueprint to a successful plan.
Also, be informed that the business investors are only after business ventures with a more realistic plan, based on solid facts and reliable figures. Your business plan has to be for years and not for the entire future of the business.
Be precise, concise, and financially wise hence, spell out a budget that is capable of covering all the expenses for the start and at the same time leave room for growth and development. Vividly highlight how you will track down the progress of the business venture and the strategy you will use to measure the results.
However, put in your best in demonstrating on paper how exactly you think your proposed business will grow and make money in the competitive market.
6. Sketch Out The Executive Summary
Another important aspect you can’t afford to skip while writing an effective business plan is writing a compendium executive summary of the proposed business venture. It is really an important section of a killer business plan.
The executive summary will explain to the business investors what your venture will be doing or plans to do in the future unseen. This section can’t just be overemphasized, it is very important for your business plan to succeed.
If your executive summary fails to capture the investors’ minds there is a heavy tendency they won’t read the business plan further and they will just arrive at a decision at that very point.
So, your best chance to stand firm among your competitors is by explaining succinctly in your executive summary what you plan to put in place so as take the proposed business to the promised land.
This is something known to you before and you believe in it but you have to explain it again in your executive summary so that others would understand it and believe in it, too, just the way you believe in it yourself.
In the end, make sure to add the financial projections to it so that the investors will know how much you need to build the business. Learn also, the Difference Between Organization and Company.
7. Write a Wonderful Marketing Plan
For your proposed business to succeed you need to map out the marketing strategies you will adopt to create awareness to your far and near target audience. Every business – whether small, medium, or large – needs efficient marketing tactics in order to see the light of the day.
So, it is ideal you come up with different marketing strategies in the course of writing your plan. A marketing strategy will make your business plan stronger and it will enhance it to look even more mature.
Critically think of ways to create awareness of your new products in the competitive market. Let your target audience know about your new business and devise a means to get new customers in the course of your planning.
However, you can make your marketing tactic competitive in nature but nevertheless, let the budget be reasonable. There is nothing more important to the growth and development of your new startup than mapping out the marketing strategy to be used in your plan.
8. Read, Reread, and Review
Having put together words, contents, charts, graphs and other important things necessary I’m the course of writing an efficient plan, the next cause of action is to read and read again the drafted business plan.
If possible, do away with the drafted copy of the plan for a couple of hours or better still, a day, and before you review it. Doing this will enable you to spot anything that might seem inappropriate to you and you might want to change it or better still, elaborate it.
It will also enable you to know – where necessary – some integral point or strategy that might have escaped your mind. This is so important because you have to make ensure that the business plan is free from any typos or grammatical errors – the presence of any will definitely ruin the plan impression.
Before we conclude, do you know the differences between a business plan and a feasibility report? if no, the read.
It is crystal clear that an efficient business plan is very important in attracting business investors and in making the proposed business grow. learning How to Write an Effective Business Plan helps business owners to understand where their business is coming from and where it is heading, how the business will stand out amidst thousands of others in the competitive market etc.
In addition, an effective business plan will enable you to understand the real and actual value of your proposed business, its strong sides, and what could possibly be its weakness.
We however sincerely hope you will find this article helpful and at the same time be able to How to Write an Effective Business Plan the help of the above-explained points.