Graphics can help clarify data-heavy pieces of a business plan.
Writing a business plan can seem tedious, but it offers potential business owners an opportunity to make a logical assessment before sinking money into a venture. Developing a business plan allows you to set out some basic strategic goals for the business, rather than figuring them out as you go. As an added bonus, a thoroughly researched and fact-supported business plan also stands a better chance of swaying investors, according to the Wall Street Journal.
Choose a Specialty
In almost any industry, very few people possess the skill to operate effectively as generalists. For example, no one opens a restaurant; people open French, Italian or Greek restaurants. By picking out a specific niche, you can differentiate your business and position it to fill gaps or serve customers other businesses ignore. Picking out a specialty or niche also allows you to more easily compare your potential business to similar businesses in terms of necessary staff, start-up costs and business space.
Conduct Research
Even if you have a clear idea of your potential competition and what you need to start your business, banks and investors won't have that knowledge. You need to conduct market research to measure the potential market share you can capture. You want solid numbers on equipment costs and building rentals or purchases. You should develop a basic marketing strategy and get cost estimates for implementing that strategy.
Elements
Virtually every business plan includes seven core elements. The executive summary functions as an abstract of the entire document. The company description breaks down features of the business ranging from mission and business model to accounting practices. Some business plans fold a section on organization and management into the company description, while other plans devote a section specifically to the topic. The plan also needs to address what service or product the business provides to customers. A market analysis details the market you intend to target, strength of competitors and barriers to entry into the market. Business plans include a section on the marketing and sales strategy for the business. The plan must detail financial projections, typically for three years.
Formatting
Good business plans aim for clarity over visual style. Use an easily readable font, such Times New Roman. Inc. Magazine recommends including a table of contents, along with topic headings throughout the document, and graphical elements where appropriate. There's no hard and fast rule for the appropriate length of a business plan. Assuming 12-point font size and double spacing, though, a typically business plan runs about 30 pages.
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