How to Write a Business Plan Worth Investment and More
“Plan for what is difficult while it is easy; do what is great while it is small.” – Sun Tzu
A business plan is a thorough document written by upper management or entrepreneurs of a business to display the reason for, practices, goals, and projections of a business for purposes of planning and attaining investment. Business Wales explains business plans as “a road map, taking you on the straightest, fastest route to where you want to go.”
Every great business plan starts with an executive summary, a small section of the document providing a description of the business, the future of the business, and the needs of the business – typically the purpose of having a business plan (ex.: investment). The executive summary is written last to summarize the totality of the document.
The next section, often titled “Business Description,” describes who the entrepreneur is, what product or service is being sold, why this good was chosen, the location of the business, key employees of the business, current industry and future expectations, and other vital details of the business that differentiates it from competitors. The Business Description section is a wonderful way for investors and company personnel to gauge the purpose of the business and why it is in business.
The third section should revolve around the product or service, title “Design and Development Plan.” This section should describe the product in detail from what it is, to the purpose of the product, and the specifications of the product. This section should also include a timeline with cost projections in the development and scaling of the manufacturing process, a great tool for investors to see how expensive the product is.
A “Marketing and Sales Strategy” section is another great section that outlines the target market of the company by performing a market analysis, determining why people will purchase your good or service – the need being filled, how the good will be marketed and sold to the target market and lastly a S.W.O.T (Strength, Weakness, Opportunity, Threat) Analysis to evaluate the strengths and weaknesses of the company in comparison to its competitors.
Next, a “Setup” section can be included to define the facilities needed and utilized by the business. The facilities listed should include locations that primary business practices occur, manufacturing locations, and key partners for business operations. This section can also include locations for marketing purposes (i.e., in-store marketing displays) and the delivery process of goods to customers.
The last section of a business plan should be “Financial Plans and Projections, this section outlines the projected revenues, expenses, etc. that the business will accrue based on the business practices outlined in previous sections of the business plan. This section should include itemized accounting practices that define each departments’ expected cost and revenue basis. While the Financials section is the last, this section is considered highly valuable; especially when requesting investment because this section outlines the viability of the business and if investment is worthwhile.
The business plan can take some time to write; but, a detailed business plan can ensure any business remains on track for purposes of production and to provide the highest returns to entrepreneurs and investors. Companies who have completed a business plan and pitch deck are invited to apply for investment on our website.