A business plan is basically a formal statement which describes business goals, the strategies for reaching these goals, and the reasons why they are believed to be attainable. A good business plan is a type of roadmap for you, as well as prospective financers, lenders, or partners, to have a clear idea and definite direction for your business.

Writing a business plan to acquire funding

In most cases, a loan is required to get any new business off the drawing board and onto the street. Before the bank will give you the loan, they want to be sure that your business will be successful. The bank will require to see a well-written, complete, and promising business plan.

You want to have a business plan that convinces your lender that your company is going to make money, and must contain whatever information is necessary to illustrate that pursuing your goal is a good idea.

Using your business plan to improve your business

Your business plan is also an extremely effective tool to help you keep your business functioning smoothly and move forward. You can use your business plan as a kind of to-do list, always having a plan for the future laid out before you. It serves as a means of putting your business in an easily accessible form, allowing you to make your company more efficient, subsequently producing greater results. A successful business plan is always a work in progress.

Using software to create your business plan

There are many software applications available that make creating your own personal business plan a little easier. Many of these programs offer various pre-built templates for common office applications such as Word and Excell. Some programs also offer sample plans for an assortment of business types. Web services are also available like Business Plan Pro or Capital Vector.

Tips for producing a successful business plan:

While there are many templates and guides to provide you with help writing your business plan, remember that there is no “fixed content" of a business plan, set in stone. The content and format of your business plan will be determined by your specific business goals as well as the audience you are writing for. For example, if the main purpose of your business plan is to acquire funding, you will want your business plan to be convincing and persuasive.

Business plans are a process, and should not be attempted to be written out in one try. A good business plan is typically very comprehensive, and requires a good deal of time and effort.

Present realistic projections. Look at your situation objectively and provide as accurate and honest information as possible. Do not underestimate your lenders knowledge of your industry. If your presentation is not realistic, you won’t get anywhere.

It is important to include supporting documents with your business plan for a any critical statements it may contain. Imagine that you are the salesman, the lender is the customer, and your business is the product. It is important to provide the proof to back up your claims.

Remember to communicate clearly and concisely. Make sure your reader will not get confused by any industry terms they may not understand.

Gear your business plan toward your specific reader. If you are attempting to get funding, talk to the lenders and find out what it is they look for in a successful business plan. Ask what they primarily focus on, what they consider an ideal length, and any supporting documents the lender may want to see.

10 Basic Business Plan Components

1. Executive Summary

2. Products and Services

3. The Market

4. Marketing Strategy

5. Competition

6. Operations

7. Management Team

8. Personnel

9. Financial Data

10. Supporting Documentation