There are an inordinate number of websites offering free templates for writing a business plan. However they fail to explain to the entrepreneur the intent, or style the business plan should adopt. Structure is important, but the key to writing any effective communication is to never forget your reader.
Don’t skip on planning, if you wish to stay in business for long. For determined entrepreneurs it does not take long to learn how to make a business plan. Apply the given ground rules and you can confidently prepare a document that will be the cornerstone of your business.
The number of start-up businesses continues to grow at an exponential rate giving the owners the opportunity of being their own boss, something that was once the domain of the rich. Businesses are started for a variety of reasons; many after redundancy and others because of a great idea or passion for a subject. However, on average, 30 percent of new businesses fail within two years and 60 percent fail within their first four years. For many business owners who do survive they exist with a mediocre income and many years struggle, often returning to a full-time role.
A good business plan has ten key components. Providing a comprehensive assessment of each of these components is critical in attracting investors. This article discusses the first five components. A subsequent article will detail the remaining elements.
In past articles we have talked about the “road map” that a written business plan can provide for either a new or expanding business. Now, let’s talk about the reasons that having a plan can be valuable for you as a business owner and give you complete preparation for some very positive and exciting developments for your future success.