One of the most common questions we get is: How To Write A Business Plan? In this post, we will discuss business plan writing. Going by the number of business plans we reviewed or helped in prepare in the last one year, the global economy is improving.
A lot of individual professionals have opened their own companies, and many companies are looking to grow with global demand for their products/services.
The physical location of people is getting less relevant in many industries. The Internet is playing a role in every business plan, across industries: Online Business ventures, IT/ BPO/ KPO / Outsourcing services, New Media, Pharma/Healthcare services, Food Retail/Cafe, and Retail chains, etc.
While there is no one unique answer to it, we want to share a good business plan template with you that we have used with success: www.gsbm.org/files/business-plan-template.pdf
From our business plan reviews, we also see a common mistake many people are making a there is a lot of emphasis on how much money is needed and what kind of sales will happen, etc.
But there is insufficient information and analysis on the market in which you want to play and the differentiators with respect to competition, and therefore, what makes you think that you will win the sales that you show in your plan.
Also, none or very little information is shared on the systems/processes in place for the business to run if you were to go down for some reason. These are important parts of a business plan.
And we hope the template we have shared above will help you. Ideally, 20-25 slides are good for any business plan, including references and supporting data.
Please keep in mind the following:
1. The purpose of the business plan is to convince the investor that your plan is practical and that there is a good chance for success.
2. If you send your plan to every VC and investor around, your effort will be high, and also your rejection rate. Therefore, first connect with propective VCs and check if they are interested at all in what you are proposing. It is often more productive to send customized mails to 20 VCs than the same mail to 200.
3. Be willing to face a lot of NOs. Be ready to start things small with alternate funding arrangements. If you will start only if VC money is available, then your plan is weak.
4. Show options at key decision points, so that different possibilities are visible. For example, what if the demand turns our to be only 50% of what you planned? Or what if it is 200% of what you planned? What if you go down with illness? What if a large company creates similar product? Identify real-life risks and show options for them. This will be received well because many VCs often start from the business risks.
If you have any particular questions or need help with your business plan development or business plan review, please feel free to contact us, and we will be able to guide you – under an NDA of course!
Business Plan Sample: Following is a recent business plan developed by us, and it is shared as a screenshot so that none of the details are visible. See the Table of Contents – note the topics covered within the brief 12 page plan. In our experience, it is possible to cover even complex business plans within 25 pages. Most business plans can be covered in good detail in 15-20 pages, including Client/Vendor feedback, and market research findings that can be put in the Appendix.
