How to Write a Business Plan in 9 Simple Steps
Running a business isn’t just about doing well day to day, it’s about knowing where you’re going. As such, many companies will create a business plan to determine a detailed route forward. A route that enables greater efficiency and better profitability. After all, there isn’t much point going into business if you’re not planning to make a profit. Many people don’t bother writing everything down when starting up a new venture, but that’s a big mistake. Usually, it’s because they don’t know how to write a business plan. But it doesn’t need to be that way. Here’s our detailed guide, along with details on your business financial plan and some handy links to business plan templates too!
Ask Yourself Why – Purpose
This should always be your first step. Before you learn how to write a business plan, you need to define the reasoning behind writing one. Is this a plan for the next three years, the next five, or a decade? You need to set yourself goals here, things the business plan needs to achieve in real terms. WHY are you writing a business plan?
Are you looking to increase productivity, or profit? Are you looking to expand into new areas of the market, or downsize? Perhaps it’s to get a startup off the ground? You need to be aware of at least the basic end-goal of what your business plan should achieve.
Know How to Write a Business Plan – Contents
The skeletal structure of your business plan is a collection of content. You don’t need to be extraordinarily detailed about this, and in rough drafts, it may just be single sentences running through each area you wish to cover in the plan. Even your business financial plan can be rough estimates for now.
The real purpose of this is to distill the information into its purest form; save the long-form explanations for later. It’ll also serve as a guide through the longer business plan, to refer back to. You’ll find that making rough notes in a draft business plan will make things much easier in the long run. We’ve included some business plan templates later on in this guide, to make things even easier! Alternatively, consider business plan software instead.
How to write a business plan – Next up: Current business, personnel, competition…