It helps to write this last; a page or two of highlights is sufficient.
Be sure to clarify whether this is a new business venture, an expansion of an existing business or the purchase of a new business.
Effective business planning is critical to your company’s long-term success, including its ability to raise capital and grow.
As a result, bankers, accountants, consultants, academics and other stakeholders have written volumes about business plans — the do’s, the don’ts and everything in between. There are, however, some best practices and guidelines that you can use to create an informative and comprehensive business plan that provides the foundation on which to go to market or grow an existing company.
Too many companies — including startups — get trapped in a reactive mode after a challenge or crisis occurs.
While you can’t be prepared for every scenario, you take time to understand some of the biggest risks to your company, and then outline contingencies to keep your company on a path to success.
One of the most critical elements in your business plan is your business model — in other words, how will your company function and be profitable?
Consider the following questions to help articulate your ideas: Part of your business plan isn’t just who you are, what you offer, how you’re going to be profitable and what success looks like — it’s also a time to be proactive and plan for risks, challenges and contingencies.
There's no one guaranteed formula for writing an effective business plan.
However, in general you have to show that you're committed to your venture and that you have the expertise, skills and necessary to make it all happen. Include a description of exactly what you're proposing.