The realization of a business plan can represent a complex step for a creator or a buyer of a business. This document does not follow any particular rules, but adherence to certain standards ensures its success. Here are 5 tips that will allow you to create a good business plan.
Prepare your business plan properly
A successful business plan is a well-prepared business plan. Before starting the creation of this document, you must collect all the elements that will serve as raw material.
To best prepare the financial aspect:
- Estimate your expected revenue correctly,
- Write down all your expenses as completely as possible,
- Take stock of your finances to determine your personal contribution.
The preparation of the editorial part is equally important:
- Clarify your ideas and clearly define your project,
- Be consistent about your goals and the strategy implemented to achieve them,
- Don’t overestimate your skills and remain as objective as possible.
Respect certain financial balances
You must carefully study certain financial indicators for the financial part of your business plan. There are balances in this area and you need to make sure you respect them.
First of all, you must ensure that your investments are financed in a coherent way: the goods necessary to exploit your activity must be financed by long-term resources (capital or loans). Conversely, stocks must be financed by short-term solutions (deposits on current accounts).
Then make a sufficient contribution (at least 20% of your financing needs), especially if you are applying for a bank loan.
Finally, check that your self-financing ability enables your company to repay its loans in less than 5 years.
Be relevant and get to the point
The purpose of a business plan is to convince the recipient. And to convince, you need to be efficient and concise. Be sure to include only those elements that are essential to understanding your project. Avoid bulky and unnecessary attachments.
Too long or too technical, and you’ll lose the attention of your reader, who probably won’t read the file until it’s finished.
You must therefore demonstrate a spirit of synthesis and establish a direct connection between your work experience and the project you are carrying out.
Pay attention to the form of the document
A business plan must be consulted carefully. To do this, make sure it makes you want to read it. Proofread and have it proofread to correct any spelling mistakes.
Ventilate the text sufficiently and alternate your writing with images or graphics. Finally, don’t forget to include a summary on the first few pages of the file.
Practice presenting your business plan
You will have to adapt the presentation of the file to your interlocutor. A business plan does not actually present itself the same way to a banker or an investor. The information to be included is not the same because it does not have the same meaning in the eyes of your reader.
Highlight the right indicators in the right places and, above all, practice presenting your business plan orally. Ask those around you for conversations under “real” conditions and don’t hesitate to get help from a professional. “Preparing a presentation pitch, or how to seduce in a few minutes or even a few seconds, is becoming an essential exercise in the entrepreneur’s life” (source: Succeeded in your presentation pitch).
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