A good business plan should be accurate, focused and give key highlights. Your first section should set out the company, its strategy and legal entity, as well as information such as a table of expected costs and funding uses. A plan that engages with an existing company should have the same information, but include the business’s history and past performances.
Another important part of your plan should be about what you sell – the products or services you offer, your USP and your margins. Including analysis of market factors such as size, target demographics and trends will help you to define your industry and the competition you’ll face.
Never miss out the strategy, and don’t underestimate the importance of selling your management team. Your financial projections don’t need to be detailed, they just need to cover key points like cash burns and risk factors.
Different audiences will be looking for different things from a business plan, so bear them in mind and adapt accordingly. The best plans keep three things in mind: milestones, assumptions and tasks. They demonstrate how you’ll measure success, and how you’ll deal with unexpected challenges.
Remember that cash is king – in the initial stages cash burn is more important than profits and losses.
You plan should show FOCUS: Funding, Opportunity, Controls, You, Systemisation. As the leader, it’s your job to reflect the ideas of the business and to work to make them a reality.
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