A business plan is a written description of your intended business. This is where you put down what you intend to do and how you intend to do it. Sometimes you may also add 'why' you want to do it too. Business plans can help perform a number of tasks for those who write and read them. They're used by investment-seeking entrepreneurs to convey their vision to potential investors. They may also be used by firms that are trying to attract key employees, prospect for new business, deal with suppliers or simply to understand how to manage their companies better. Putting you goals and ideas down on paper helps you organize your thinking. Your employees and other stakeholders understand what you plan for the business and it helps keep the organization focused on the big picture. Simply stated, a business plan conveys your business goals, the strategies you'll use to meet them, potential problems that may confront your business and ways to solve them, the organizational structure of your business (including titles and responsibilities), and finally, the amount of capital required to finance your venture.

 

Preparing a business plan can be a time-consuming and daunting task. However, the importance of a business plan to achieve funding and growth goals cannot be ignored. So one should get down to it and start composing a business plan.

 

1. Decide why you're writing your plan 

 

 Raising money

 Clarifying the company's future

 Launching a new venture

 Searching for partners

 Plotting against the competition.

 Recruiting 

 

Whatever your reason, the business plan will serve its purpose better if it is spelt out in the very beginning

 

2. Study business plans 

 

Before accumulating mountains of research and information, take a look at other business plans. Your goal is to get a feel for what a business plan is, what it isn't and what to expect from your business plan. With this new insight, prepare an outline that includes the major sections and subsections that you believe should appear in your business plan.

 

3. Collect Information 

 

Dig through every computer file, box and file cabinet you have to unearth the information that's already available to you. You'll surprise yourself with what you find and with how nicely this step will move you forward. Consider marketing pieces you've prepared, press releases, related articles, industry journals, historical financials, important web sites and notes or ideas you've accumulated over time. Don't rate the quality of this information - just gather it. At this point quantity is the name of the game, and the more you can find the better.

 

4. Put it down on paper 

 

Start typing thoughts, ideas, words, questions and to-dos into each section of your business plan outline. Put rough thoughts on paper and empty your brain. Don't worry about complete sentences or proper grammar - just type. Approach this step like a brainstorming session, the more powerful the storm, the more potent your business plan.

 

Jot down any ideas that demand further consideration, areas that present a challenge and topics that require the input of others. Strive to place your thoughts in the most appropriate section of your business plan outline and rearrange the outline if it will be more logical for your readers.

 

5. Prepare your rough draft.

 

Now it's time to take your outline, the information you've got handy and your brainstormed ideas and shape them into a useable rough draft. Move through your entire outline, section by section and begin writing complete sentences and paragraphs. As you work, start a To-Do List to keep track of topics that require in-depth research, statistics or back-up information. Go through your draft several times, revising lightly as you go.

 

Your plan should be rather sparse, but when you've completed this step, you've truly made progress.

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