Most people work long and hard on their business plans; however, many times we neglect the finer details. A good plan outlines your thinking process and motivates the reader to invest in your venture Sarah Mae Ives’s podcast.
This is why it’s important to consider every aspect of the plan before presenting it. The tips below will help you create a strong business plan that can improve your business performance and convince others to invest or partner with you.
Read Also: How to write a proposal for a project.
Seek business plan advice
A business plan is useful for assessing your start-up’s potential, but it is also essential for attracting outside investors. Even if you are planning to self-fund the venture, a good business plan will give you something tangible to base your ideas on and will serve as a guide during the startup process. Make sure that anyone who gives advice on your business plan knows what they are talking about. Look around for business plan advisors who have extensive experience and background. It would be better to have an expert assist you than someone who doesn’t know how to write or read one properly. Also, select an advisor who is familiar with your business operation or the startup you intend to open.
Use analytics early
One of the first things that your business should focus on early on is its website analytics. Metrics such as bounce rate, average session duration, conversions per visit, and revenue per user can help you determine where visitors are coming from, where they drop off and how to optimize your pages. You can then use this information to improve your site’s design or even alter its content before having a significant impact on revenue.
Use a SaaS platform
It is a good idea to use a Software as a Service (SaaS) business management platform for your online presence. These platforms can create invoices, track clients and make it easy for you to manage the payments of recurring customers without having to spend on expensive software licenses. There are also solutions that integrate with accounting software such as Quickbooks and Xero which help businesses communicate more seamlessly with their accountants. Try this out for yourself or *check out for more info*.
Be wary of taxes
Start-ups tend to have poor cash flow initially while they wait for their new clients to pay invoices. If you cannot afford to hire an accountant, give your books some attention every day since it is better to spend time on bookkeeping than face a hefty fine for not filing taxes properly.
Use social media
Social media platforms are a good way of getting direct access to potential customers. They can also be used by business owners who don’t have the time to engage with their network face-to-face. However, if they are not used correctly, they can result in significant financial losses instead of business gains. Be sure that whoever manages your company’s social media accounts knows what he or she is doing before enabling them to do so.
Plan for bad times
It may sound like common sense but many companies forget about planning for bad times. It is important to plan for the worst because chances are that something will go wrong and you won’t be able to make ends meet. If you have a cushion in place, your business and its employees stand a better chance of surviving lean periods.
Be open with investors
Not sharing all information with investors can drive them away and affect your professional relationship in the long run. Whether they invested in your business looking at short-term or long-term gains, it is best to regularly update them on how the company is doing. This way they’ll also know what changes need to be made along the way which may include cutting costs or changing management if necessary.
Stick to timelines
It’s important that deadlines are met in the business. Late deliveries can lead to a bad reputation and unhappy customers. That is why it may be wise to invest in technology such as digital asset management software if your company needs an efficient way of managing contracts, releases, and other deliverables.
Develop relationships
All work and no play make Jack a dull boy. It’s important for business owners to take their minds off the day-to-day runnings of their businesses by engaging in community activities or networking with potential clients or investors outside office hours. This will help them relax and come up with new ideas that they can implement when they get back into the office.
Keep your business plan simple to understand
Don’t make the mistake of thinking too highly of yourself! Remember that a reader may not be as familiar with the business as you are. They may also have a full-time job and little time to read long, complicated documents. For this reason, try to keep all your information short and concise. Use bullet points and lots of examples to make it easier for them. Try splitting your plan into sections, each covering a specific topic. Make sure you have an executive summary, a business overview, a marketing section, sales data, etc.
Don’t forget to cover the FAQs (Frequently Asked Questions)
This is very important because if your plan includes facts and figures that apply to your company only, it will be difficult for investors to make a decision about investing in you. Avoid information like: “We sell the best burger in town,” or “Unlike our competitors, we offer free shipping.” What does this mean to an investor who has never eaten at your restaurant/used your online store? Instead, write something like: “Our main target audience can’t afford expensive restaurants, but they love burgers. If we add free delivery with every purchase over $10, then we think our sales revenue will increase by X%. We also expect this figure to double in Y months once we advertise our new burger on social media.”
You can also include a SWOT analysis as part of your FAQs. A SWOT analysis is a way of showing the strengths, weaknesses, opportunities, and threats that a company/product faces. This type of analysis can help you to draw conclusions about what your business needs to be successful. Consider questions like: What kind of strengths or weaknesses does our product have? If we enter market X, will there be any threats from competitors? How many opportunities are there in our current industry?
The most important thing with your business plan is to make sure it is customized for YOUR TARGET AUDIENCE. There are lots of samples online but remember to make it look professional and presentable. It is always better to ask for advice or hire a professional to work on your plan. If you are feeling very confident, then try making the plan yourself. At the end of the day, all that matters is what’s inside and how effective it will be when applied.
