What Factors Make the Difference Between a Good Business Plan & an Excellent One?
You think that developing a business plan is a thing that everyone can do; however, you forget that the details make it top-notch, while a lot of people just neglect them. A plan with assumptions and broad overviews may be not bad, but the partners, lenders, and investors, who are interested in long-term cooperation, require profound research and excellent support to believe in your ideas. Your business plan cover page and its content will gain more value if the plan covers as many questions as possible even if your ultimate goal is not a request for assistance or extra funding.
A simple business plan can be accepted as an outstanding one if it has thoughtful and logical organization of the ideas. Then the readers can easily understand where the assumptions become valid justifications. The more logical and organized your plan is, the easier the readers will follow the ideas and will get back to it for further information. If you add a contents page with sufficient details, specific sections devoted to the services or products, an executive summary about the prospects for the future, a summarizing page, a business plan cover page with full details, supporting papers, and all financial and marketplace numbers, the plan will look as excellent.
Numerous professionals in business start the plans with an executive summary instead of placing it in the end. They know how to write a business plan with a summary that presents a business idea with the relevant reasoning, corresponding contributing factors, an estimated cost of startup, eventual profits, and a break-even period. The length of an executive summary is typically maximum a half-page as I should not cover any financial numbers or details of the market research. The executive summary is aimed at getting the readers interested in business plan review.
Overview of the Company
Among the parts of a business plan, there is a section of service or product description which tells about the benefits, difference from the competitors, and peculiar features of the brand in the marketplace. It is not required to add any detailed information regarding the profits or manufacturing costs. The section is supposed to justify the need for a product and prove that it has certain benefit in the marketplace. If a business plan only attempts to persuade the audience in the excellence of the idea, it is weak. A great business plan should give all valid proofs that the service or product is in high customer demand. .
What is a business plan without a well-written marketing section? It should go beyond the analysis of PR, advertising, and promotions. What this section does is presentation of the market research to support the idea which can sell. It covers the information about the target audience, competitors, marketplace, and current figures of sales. It can also include the analysis of the used distribution channels. After that, it can tell about the advertising campaign, strategies of promotion, PR, and tactics of market research to make your recommendations trustworthy.
All elements of a business plan are supposed to support its benefits, while the best business plans always give all details of financial information, in particular overhead costs, startup expenses, manufacturing costs, profit projections, sales expenses, and break-even points. It is recommendable to have more than one budget included in the business plan, as the readers will thus be convinced that you do plan the activities. They will see a budget with the outline of the startup costs, the budgets with a break out of the manufacturing and overhead costs, a cash flow statement, and an annual master budget. A proficient business plan writer always provides sufficient detail so that everything was included at once.
It is a good idea to supplement the business plan with an appendix to cover the details on the data, research, graphs, charts and other information that can justify the plan. Having proved the viability of the concept, explain the potential funding and how the initial operating costs will be covered to predict the profits and show the needed qualifications. Moreover, present your biography as your experience related to the business is valuable for the readers. Give detailed explanations of your plans as for contractors and hired personnel.
How to Conclude a Successful Business Plan
It is an art how to write a successful business plan which will work well. You do need the support for your business, and a strong business plan conclusion can provide it. Potential investors will not believe in the weak conclusion that can convince nobody. Being hypothetical, a business plan should nevertheless reflect confidence. If a conclusion is strong, it reiterates your vision, determines your needs, gives a call to action, and inspires the readers to join you. However, if you fail in writing a small business plan with a great conclusion, your efforts will be wasted.
- Try to sound optimistic. You should sound as if you believe in your initiatives; otherwise, other people will feel discouraged. Show confidence saying, “This plan will help the company meet the set financial goals for the next year,” instead of saying, “We will gain success if we are lucky enough.”
- Give the summaries of the opportunities. A good business plan template always covers a lot of details, including the projections, start-up capital, and target population groups. Do the summarization and inform the readers accordingly.
- Outline the estimations for the next three-to-five-year period. Clearly demonstrate the potential benefits for the investors. For instance, say, “We expect the company to increase 50 percent over the next three years.”
- Focus on your advantages. Persuade your readers to invest and get a competitive edge. Say like that, “Our company has claimed the top place in the market owing to the experience and use of cutting-edge technologies.”
- Present your expectations from the readers. Do not ask, “How long should a business plan be?” Just make it interesting for the audience. Note that your ideas of contributions may be different from those your potential investor has. Specify the numbers.
- Finalize the plan with a specific call to action. A good plan makes the readers interested and aware of your expectations. A final push should be powerful as well. For instance, “Do not miss this wonderful opportunity to enjoy growth potential with us.”