Writing a business plan doesn`t have to be complicated. In this comprehensive guide, I`ll show you how to quickly and easily write a business plan that will get the results you want. Don`t worry, you don`t have to have a business or accounting degree to put together a great business plan. This guide will show you how to get your plan done step-by-step without any of the complexity or frustration.
A business plan is more than a document. It`s a guide that helps you outline and achieve your goals. It`s also a management tool that allows you to analyze results, make strategic decisions, and showcase how your business will operate, and grow. In short, if you`re thinking of starting a business or plan to pitch your business to investors, writing a business plan can improve your chances of success.
Projections are important not for their actual numbers as much as for their presentation of drivers, relationships between growth and spending, key spending priorities, sales aspirations, and assumptions related to cash flow. They have to be solid and integrated, but accuracy is much more a matter of transparent assumptions than accurately predicting the future.
The most common mistake by far is on profits. Startups that grow don`t produce profits. Investors make money on valuation increases, not profits. Real businesses rarely produce more than single-digit profits. Big profit projections are sophomoric. Take all those profits and dump them into marketing expenses and you`ll be better off.
There is value in doing an ample amount of preparation prior to creating a business plan: you construct creative solutions to complex problems. Make sure to take the time to do the job properly. Additionally, be sure to keep detailed notes on your sources of information and on the assumptions underlying your financial data.
It`s trendy to say investors don`t read business plans, but what actually happens is they only read business plans of the businesses they are interested in. They reject businesses from intro and pitch, without reading the business plan.