If you're starting a new business, you need to have a business plan. Your business plan will guide you through all of the key decisions you need to make early on. How will you reach your audience? Who do you need to hire? How many customers do you want to have by the end of your first year? Your third? These are just some of the questions your business plan should address. Before you can start handing out business cards and trying to convince investors to give you money, you must decide exactly what your business is going to do.
Business Plan Basics
Unlike a mission statement or an elevator pitch, business plans are not meant to be brief. They should be expansive, detailed documents that fully flesh out your company's future. You're going to use this to wow investors and convince key hires to join you, so it has to describe why your business is worth their time and money. Most business plans are around 20 pages long, although some are twice that length. If your business plan is breaking 40 pages, you probably have more information than you need. Business plans already have a lot to take in, so make sure there are no extraneous details.
Topics Covered
Every facet of your business should be covered in your business plan. Break the document up into sections and include a table of contents so readers can browse in the order that makes sense to them. Topics your business plan should go over include:
- A description of the product or service your company provides.
- An analysis of the market and how your company fits in.
- Your target audience.
- An overview of your competitors and how you will stand out.
- A marketing plan that details how you will spread the word about your company.
- Hires you plan to make and roles your company will have.
- Milestones your company will reach as it grows.
- A financial plan that goes over the funding you need and your projected profits.
Writing
Before you begin to write your business plan, come up with an outline that includes all of your key points. Gather charts and data that you will use. Write multiple drafts and always look at your writing with a critical eye. Try not to be the only eyes on your work, and stay open to feedback and criticism.
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