What a business plan is:
A business plan is a report that tells the reader what your business is about. It includes several different sections like the executive summary, operating statement, mission statement, important documents, market analysis, situational analysis, and marketing plan.
Why a good business plan is necessary and valuable:
A good, well written business plan can be used for several important things. First, it can be used to raise money from investors or bankers, and second to help the business owner plan the details of the business and be clear on what it will take to be successful.
Some general rules:
Business plans can be in many different formats, but as long as it has the important information, the format will be fine. Don’t put the business plan in a fancy leather binder. The investor or banker reading the business plan will not be impressed. Just use a nice folder or binder. Use a cover sheet with the name of the investor or banker and his title and company he represents, and a table of contents.
Don’t make your business plan 50 pages. No one wants to plod through 50 pages. Make it long enough to explain your business plan but no longer. The investor or banker will usually read the executive summary first and then turn to the financial section. If those numbers look OK, they will turn back to the second section in the business plan and start reading there.
How to make your business plan sell an investor:
As I said earlier, most business plans are written to inform the reader. To create a business plan that sells the reader, it should be written as a selling document from the beginning.
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