Writing a Killer Business Plan
Executive Summary
Like many other strategy documents, business plans present a clear and concise view of where you would like to see your company fie years down the road. This month’s cover story provides you a hands-on as well as experience-based approach to effective business plan development and explains precisely what you should and should not include in a successful business plan.
Beyond the Business License from City Hall and the Business Checking Account from your Banker
When establishing your Internet business, there are several legal formalities you are expected to complete. These formalities, although cumbersome and occasionally time-consuming, aren’t difficult to execute. Articulating a vision, mission and a list of priorities for your business however is a whole different story and more often than not, success factors depend on how well you have formulated your overall business statement. This holds true not only for those who are planning to launch their online business ventures. It is equally true for many of you who are already operating successful enterprises on the Internet. A well-crafted business plan helps you to sustain the momentum you have so painstakingly created in your business venture thus helping you to grow steadily and achieve new heights of business and personal success. A well-written business plan may help you obtain a new line of business credit, increase existing limits, bring new investors and venture capitalists on board and even help independent organizations and agencies accurately assess the total net worth of your company. Business plans, however, take you to the next level of expansion and growth by helping you develop a sense of clarity in your own mind about where your company is today and the direction it should take tomorrow. Developing a business plan has been recognized as an excellent way to define, chart and implement your business goals.
Ten Components of a Successful Business Plan
The following step-by-step expose on writing impactful business plans will most certainly get you started on creating your business strategy document for both internal and external use. If the ideas take time to incubate and take the shape of concrete words, that is perfectly normal and OK. You can always worry about the stylistics, grammar, punctuation and syntax later. What is most important is to get the ideas down on paper and the juices flowing. As Peter Elbow, the famous writing expert says, writing is more about ideas, concepts and thought processes than it is about spelling, grammar and punctuation. Here are the ten most critical elements of a well-crafted and insightful business that accurately reflects your company’s objectives and your personal milestones of achievement.
Viable Business Proposition…
The business idea you propose to pursue or plan to expand further should address a clearly defined need of the marketplace and should be based on market research that is both accurate and scientific. Immediately after your introduction, this should be the first sub-heading in your business plan.
Reliable Incubator Funding…
Do you have sufficient seed money or investment capital to set the ball rolling? Mention this clearly, describe the extent to which this is reliable and identify, if possible, the source of such funding—personal savings, family support, insurance annuity and other sources. For any business venture to blossom in a timely manner it should have direct and immediate access to operating capital which will help sustain the business for at least six to nine months.
Risk-return Ratio…
What is the profit potential of the business in terms of the risk exposure and the initial investment. This is a rather significant value proposition you should consider specially if you are involved with a start-up.
Clear Definition of Goals…
In this sub-heading, define both your short-term and long-term objectives realistically. This is one of the sections in your business plan that your readers and potential investors will assess very carefully before they arrive at a funding decision.
Competition Analysis…
Who are your competitors and how are they fairing? Is the playing field level? Is it way too crowded? It is also a good idea to conduct demographics research and conduct a theoretical pre-test of your primary business idea by interacting with potential customers and target markets.
Zeroing in on the Competitive Advantage…
For your company to achieve a reasonable level of success initially, you should be able to wear at least half a dozen thinking caps and come up with a few competitive advantages that your organization brings to the table. Explain these competitive advantages in this sub-heading once you identify them and determine their feasibility.
Aggressive Marketing Strategy…
In an age of hyper-competition that is slowly but surely achieving a global manifestation even in the most traditional verticals, it has become essential to be aggressive. Your marketing plan is an integral element of your business plan and should reflect in clear and precise terms the various measures you plan to implement to generate a steady stream of business.
Top-notch After Sales Service…
You can define it whichever way—customer service, customer support, customer satisfaction—the ultimate aim is to build, preserve and sustain a “happy” customer base that keeps coming back to you for more. Repeat business is not merely the order of the day. It is indispensable to survival. Customer support strategies such as live chat, dedicated live support, e-mail based customer service and other modalities are a given these days in a super competitive business arena.
Human Resource Strategy…
Skilled and motivated employees make a successful organization. How do you plan to source your human talent and more importantly? How to you plan to keep them in a human resource-starved global scenario? Even if you choose not to address this issue in your business plan, it is perhaps a wise idea to contemplate it so that your organization is prepared for all eventualities.
The Almighty Budget…
If you are neither a bean counter or a financial whiz kid, this extremely crucial section of your business plan may require you to seek expert consulting help. Your budget should clearly spell out your company’s capital requirements, the growth curve, time line in relation to the break even point, and a profit analysis and forecast based on realistic operational factors.
Conclusion
When you enter your car and get ready to drive away, you know what your destination will be. Operating a business is no different. A viable business plan is much like a roadmap that charts a clear course for you.
Your business plan should be precise, terse and journalistic as Hemingway would put it. However, do not be stingy with details, facts and a tinge of persuasion. After all, the primary purpose of your business proposal at the front end is to persuade your reader to take action in your favor and support you as you gradually make progress on your pathway to success. Good luck from all of us at Live2support!
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