Writing a Killer Business Plan

There are thousands, if not millions, business plans that unfortunately stay as potential dreams; they never make it to the final acceptance stage. Although this can occur for a variety of reasons, don’t turn over your next business plan to the graveyard! The critical components of a business plan include organization, format, appropriate length, detail, adequate financial support/information, and a strong vision and purpose. Its value and purpose to the potential investor, owner, and future employees, is to provide an analysis and description of long-term goals, and the viability of the business venture. It will serve as your marketing weapon when approaching banks and investors, and will also enable you to discover potential risks, weaknesses, and strengths of the future business.

Since the business plan follows a formatted and strategic approach, the main focus of each plan should include the Vision, People, the Market/Industry you are entering into, an Economic/Demographic assessment of the regions you will operate in, and a Cash Flow disclosure. Addendums should include marketing plans and goals, as well as a competitive analysis forecasts or reports.

VISION: The main focus of the Vision should always be the one unique and definitive business concept. This may be understood as what makes your business truly unique, and how it sets you apart from the competition. This component also identifies what measures you will take, or have taken, to find the information and resources you will need to grow. The business concept essentially highlights and outlines what the main purpose of your business is. This is part of the Vision component, as it serves the purpose of creating a final vision statement to showcase the main criteria and focus.

PEOPLE: This is essential to identify by outlining what ethical values, commitments, levels of expertise, and skills you are looking for in order to build your business. Here you will include your biography, but also those of partners, current employees (if any) ,and interested parties.

MARKET/INDUSTRY: This component is a critical area, as it identifies the market and nature of the business you are proposing, as well as highlighting the need for your particular business. It is your business profile; you can either focus on the healthiness or stableness of the market, or its opposite and how you intend to correct or fill the gap. This is also the time to generate information on any test-market results, initiatives, or plans for marketing and strategy developments.

ECONOMIC/DEMOGRAPHIC ASSESSMENT: This area focuses on a regional, national, or local level of your market penetration. It is a forecast, but also an assessment of your target market, where you hope to expand, and what alternatives and areas you are looking to explore as your business grows. Any test-market traffic reports, data, or past history are important here.

CASH FLOW ASSESSMENT: This is perhaps the most difficult area, as it may be challenging to find accurate information on start-up costs, projected income, and planning and development needs. However, you will need to come up with a projected one-year cash flow for not only start-ups, but as a guide to construct a budget for your company. This should also include how you plan to fund any problems or gaps during your growth process. It is imperative that your accounting and financial skills are enough to create a realistic cash flow assessment.

After these key areas are arranged and formatted appropriately, it’s important to keep in mind that revision and ‘upgrading’ your plan are part of the process. Depending on who you are approaching, you will need to use any negative feedback constructively, and really determine how this information will help your business plan reach the top! No matter how wonderful an idea or concept is, it will not reach the stage of a final business unless it is supported with accurate data, research, and funding. Millions of inventions, unique ideas, and concepts have been generated by visionaries, inventors, and marketing departments for years; yours will be no exception! Instead, you can make your idea exceptional by literally proving why it will exist in the near future. It will take considerable confidence, persistence, and flexibility, but the success far outweighs the amount of hard work and difficulty you may endure in the beginning stages.

Assembling a killer business plan does not need to be difficult with the right tools, mindset, and resources available today. Take the time to browse sample business plans online, at the local library or bookstore, or from a mentor. Learn to see the differences in formatting style and techniques, noting what stands out amongst the crowd, and what simply looks ‘invisible.’ When you’re ready to present your piece, you’ll be confident, self-assured, and ready for questions with just enough preparation and information that just may carry your idea into reality!