The business plan of a start-up defines the development of your business idea in the short and medium term. It’s a document that, apart from being important as complementary information for many investors, helps you to better structure the ideas in your head and correct errors in planning. When you start dealing with investors, many of them will ask you for additional information apart from the presentation of your project.
Apart from a short version (Executive Summary), this is a business plan. The business plan explains the business idea and how we want to develop it. Based on our experience at OGScapital business plan writers and feedback, I share with you the following 10 tips for writing a business plan.
#1. No More Than 20 Pages
We are already optimistic if we think that an investor is going to read your entire plan. Structure it so that through reading in scanner mode the most important messages can be transmitted. As in the presentation for investors, the introduction and the summary are the most important.
#2. Structure Similar To Your Presentation For Investors
If you have already created a presentation for investors, use a similar structure in your business plan. In this way, you help an investor to obtain more detailed information on a sheet of paper and find it directly in your business plan.
#3. Support Your Data With Reference Sources
An essential part of your business plan is the description of the market. You create confidence if you use external reference sources when you provide market data. If you provide the origin of the market study, you show that you also know your sector well and position yourself as an expert.
#4. You Write For An Investor And Not For A Client
Just like in the presentation for investors you have to put yourself in the investor’s shoes. Think regarding ROM (Return on Me). It shows that you and your project are a good investment for him: who is a possible buyer of the company or how do you want to bring the company to the stock exchange?
#5. Discuss Forms Of Payment For Investors
Some investors want a role in which their participation is needed, others put associates on the board of directors, and others do not want you to involve them in the activities. All investors want to know when they will get their money back and what interest rate they will receive. Most seek to leave between three or five years. Give them a concise explanation of the орtіоnѕ fоr іnvеѕtоrѕ or at least talk about it, say you’re prepared to talk about the options with a serious prospect.
#6. Correct Grammar And Good Editorial Style
Writing a good business plan requires a lot of time and effort. Do not throw all the work in the trash causing a bad impression with a badly written plan full of spelling errors. It may seem basic, but sometimes it is the basics in what many fail.
#7. Professional Design
The appearance of the document is as important as a correct spelling. Even if it is just a PDF that you send by mail, it has to make a good first impression when an investor opens it for the first time. If you are not a designer, seek help from a professional.
#8. You Want To Tell A Story
Investors like to read stories. Do not make a cold plan solely based on numbers and customer needs. Try to add a more personal perspective (whenever possible). The closer your story is, the more confidence you can create with a potential investor.
#9. Update The Plan Frequently
When you start a project, you get new information on a daily basis. It makes sense to update your plan whenever you can improve or update the content by making the story you most interesting.
#10. Images And Graphics
As the popular saying says, an image says more than 1,000 words. Try to improve the reading of your business plan with simple and understandable graphics. Besides improving the visualization, they help an investor to scan your document initially.
The Below Are A Few Stuff You Should Not Include
A Form Of Substance– If your document looks good but does not have a solid foundation in facts and research, it’s better to save energy.
Empty Complaints– If you make a statement without supporting it with an argument it is better to leave it out. You need the next thing you say is with some statistics, fact or even a phrase from a known source that supports the complaint.
Rumors About The Competition– If you are sure that your competition is going to go out of business, you can mention it but avoid listening to their weaknesses or gossip!
Superlatives As Well As Strong Adjectives– terms or words such as surprising, incredible, better, outstanding, great and fabulous should not be in the plan. Steer clear of (unique words) and the likes unless you can prove with details as well as facts that there is no other service or perhaps product like it.
Overestimate In Your Financial Projections- Surely you really want to appear great, however, resist optimism. You want to employ half of the stuff you think is sensible. It’s really make sense to underestimate in your financial projections than to have expectations that are not true.
Excessively Optimistic Deadlines– Inquire around or perhaps research online. If most companies take between six and twelve months to work, that same time will take you. You will face delays that you do not know and that you will not be able to control.
Tricks– All these serious investors out there really want facts, they don’t want tricks. Maybe they will have the very chocolate rose which came with the plan, but that will not make them fascinated in investing in your project.
Amateur Financial Projections- you want to spend some cash as well as hire an accountant to complete this for you. It will help you see the financial side of the business and put the numbers in a standard business format that the investor knows.
Lastly, I’ve explained how to write a business plan for your project with this brief post, in which I analyzed the characteristics that every business plan must meet. And remember that a well-written and a nice structured business plan is an essential tool to present your business idea to third parties, especially investors, banks, and institutions.