Steps For Successful Business Plan
If you have sold your last startup for huge amount then even the conservative investor won’t worry about your next business plan and you very well know how to build the business. But it’s not that simple for all of us, don’t believe that you will sketch the multi-millionaire idea at the back of the tissue and all the investors will line up to offer you money, it’s just a myth. What really matters is the business plan and if you are not able to provide it, it kills your credibility. A great business plan doesn’t have to be the world’s best plan ever or doesn’t have to be a book in length. The plan must be simple, in the range of a maximum of 25 pages, concisely describe the how, where, what and when of the business plan and contain all the relevant questions from the investors, partners and team members could imagine.
The best way to have a good plan is to document and organize the process. For example, are you comfortable in buying a home from the builder or build it by yourself with no budget, features and timeframe? I hope nobody will invest in a business without the plan.
Here are 10 steps involved for a formal business plan, or you would say a sequence with relevant content.
1. Give a managerial summary to the business plan.
2. Identify the problems and try to find the solution for the problems.
3. After the problem-solving process give the company sketch.
4. Now you have an idea about the company, explain the investors about the market opportunity.
5. Develop a business model for the company.
6. In the high-risk business, analysis of opposition is very important.
7. Get hold of the strategy for sales and marketing.
8. Decide the management team for the smooth flow of the work.
9. Now it’s high time to give the forecast of future revenues and expenses for an organization.
10. As the pre-determined objectives have been achieved it’s time to extricate from the situation to mitigate failure. This is also known as exit or harvest strategy.
Don’t skip any of the steps as that will be an incomplete business plan and therefore no guarantees of secure funding. Don’t put your investors into the situation where there is a danger. It only takes little extra effort to make a table of contents, index and the core Para of the plan. Avoid using jargons, partial plan, acronyms and technical terms are just to impress them. Make sure you manage the plan and understand every element of your own contract. However cool the idea is without a business plan it is dead, so find a mentor to help you in domain knowledge.
Studies say that who create a good plan guarantees in building a successful business.