Writing a business plan can be a daunting process. Summing up your entire business proposal in just a few pages is never easy, but potential investors need to see that you have done your research and created a viable plan for your business idea. Here’s at Boris Dobrin how to write a business plan for potential investors.
The executive summary is a brief overview of the entire business plan. You should always place it at the beginning of your document.
The executive summary is the most critical part of your business plan. If it doesn’t make the reader want to know more about your business idea, the rest of your plan will remain unread.
As the executive summary is intended to summarize the whole plan, it should be the last thing you write.
Investors will want to see a description of your business. Keep it short and concise but provide enough information to help them understand your vision for the company.
Investors will also want to see an analysis of the industry, including a brief description of the history, current possibilities and future outlook for the industry in which you’ll be working.
The market analysis is where you’ll define and demonstrate your understanding of your target market. Extensive market research is crucial for gathering the data and statistics you will need.
Your market analysis should include necessary information about your intended customers, such as their age, gender, and geographical location, as well as more detailed information, such as their interests, beliefs and the types of publications they read.
The aim is to show that you understand your target customers and you know how to reach them with your marketing material.
The competitive analysis should provide information about your competitors, including the types of products and services they offer, the prices they charge and any other relevant facts.
You should also use the competitive analysis to show how your business compares to similar companies, how you intend to compete and which strategies you will use to secure your share of the market.
The development plan is used to provide detailed information about setting up and growing your business. You can use this section to provide a step-by-step plan and a list of milestones for turning your idea into a successful business.
The development plan is also where you will set out your budget and explain the costs involved and purchases you’ll need to make before and after the launch of your business.
The operations plan should explain how your business will run on a day-to-day basis. That will include a list of management, employee, and other roles that you need to have filled.
The operations plan should also set out the responsibilities and legal obligations involved in running your business.
Financial forecasts should include a detailed analysis of sales, cash flow, gross and net profits expected for the first year. Depending on the amount of money you are asking from investors, you will also need to provide financial forecasts for the next five, 10 or even 20 years.
The presentation is important when creating a professional business plan. Make sure there is plenty of white space between paragraphs and use a new page for each section.
Use charts, graphs, and other visual aids to break up the text. Using bullet points and lists will also help to make the information more accessible, and easier to digest.
Avoid jargon, buzzwords and complicated terms that will distract the reader. Use simple words and short sentences. Break large blocks of text into short paragraphs.
Finally, proofread your business plan to check for spelling mistakes, grammar errors, and unclear writing.