Business Plan Tips and Tricks
Change is inevitable
Start with a strong but adjustable plan that you can modify according to your ultimate goals. The plan needs to be adjustable for one simple reason: it’s almost guaranteed that your business will change over time as you verify your projections and identify potential problems. View your business plan as a living document; the plan grows as the idea matures. Writing the plan is not a one-time effort.
Also, although detailed research will help you add validity to your projections and identify potential problems, it’s difficult to predict exactly what will happen in the future. Some aspects of your plan, such as the financial and cash projections, might end up being inadvertently fantastical because, naturally, you’re optimistic about the success of your venture. That’s OK, but you’ll likely deviate quite a bit from your final projections as you begin implementing your idea.
Do it beforehand
Don’t get caught planning and developing your venture simultaneously. Not only will it be difficult, you won’t have had time to evaluate the possible risks and problems. Writing a base business plan is reserved for the preparation time before you actually begin your business venture.
Nothing but the truth
Be careful what you put in your business plan. Someone—perhaps an investor—will hold you to it. For example, the plan normally includes milestones that investors expect you to meet (and, in fact, your next round of funding may be contingent upon doing so), so don’t make promises you know you can’t keep. Taking money from an investor because you intentionally or unintentionally provide misleading information is not a game you want to play! Never lie or even exaggerate about your technology, your background or your capabilities. The truth will come out sooner or later.
Solve problems before they become problems
Sometimes foreseeing a problem can actually help you eliminate it before it happens. Build your plan on solid research so you can identify possible problems and take the necessary precautions to avoid them. The time and effort you put into projecting and planning will help save time and limit frustrations later.
Make a multi-purpose plan
Since you probably won’t have time to write two business plans, look at your plan from both an internal and an external viewpoint. You must consider that the plan needs to outline the internal structure of your plan and operations, as well as provide external viewers, such as investors, with ample external validation, such as market research. In both aspects of your business plan, be as specific and detailed as possible, and also be realistic. Once again, the more preparation and care you put into planning the fewer hassles you’ll encounter in the long run.
Getting people interested in your plan
Part of the purpose of your business plan is to convince potential investors that your venture has a good chance for success. Investors want to know that your venture has been well thought-out and that you have a team that can aptly take advantage of opportunities as well as handle problems that arise.
Be thorough, honest, and realistic when you create your business plan. Investors know there is risk involved in any venture and that there will be barriers as you implement your venture. If you acknowledge and evaluate the scope of potential problems, investors will see that you are well prepared and will be more likely to feel that they are making a well-informed decision to invest in your venture.
Get help
Other than reaching out to your mentors and advisors for help with writing a business plan, there are numerous websites, books, software programs, seminars and organizations that offer substantial help. Some organizations include:
- Small Business Development Centers (SBDCs) offer a wide variety of information and guidance to individuals and small businesses. If you need help developing your business plan, SBDC counselors can help by offering assistance with market research, cash-flow projections and more. And, in most cases, the help is free.
- SCORE: The Service Corps of Retired Executives is a nonprofit group of mostly retired businesspeople who volunteer to provide counseling to small businesses at no charge. A program of the SBA, SCORE has been around since 1964 and has helped millions of entrepreneurs.
- Your local chamber of commerce provides networking, lobbying, training and more. Among the services the US Chamber of Commerce offers is a web-based business solutions program that provides online help with specific small-business needs, including planning, marketing and other tasks such as creating a press release, collecting a bad debt, recruiting employees or creating a retirement plan.
have fun in making business plan
