A strong and successful business plan is more likely to find funding from lenders and investors than a business plan that is weak or misguided. Here are 5 tips to help you write a successful business plan that is sure to attract investors.
If you are writing your own business plan, consider doing extensive research before you even begin. Research will help to uncover the many challenges you might have to handle, along with opening up additional customer segments that you werenít originally aware of. Some challenges may be difficult to overcome, so doing research beforehand will give you the opportunity to alter or discard your idea. Doing research will save you time in the long run, in case you need to rethink your idea or abandon it altogether.
A clear and concise market opportunity in your business plan requires a description of both your customers (who need your product or service) and your competitors. Prove that the size of the market is large enough to sustain future growth. Demonstrate that your strengths will take advantage of your competitorís weaknesses.
Your business plan is a logical argument that shows an opportunity, your resources (management team, cash, location etc.), the methods you will use (marketing plan and operations plan), and the results you intend to see (financial and growth.)
Any financial assumptions that drive revenues and costs of your financial plan should be explained at some point in a successful business plan. Do not leave any assumption to the reader, as they will most likely imagine that unexplained assumptions are baseless or created from the entrepreneurís own optimism.
The structure and format of your business plan should always be professional and clean. Try to stick to the standards most commonly used by business plan writers. Avoid using creativity while formatting your business plan. You should save this for your marketing and operations sections, without using formats that are too distracting or outside the box.