Do's and Don't of Writing an Amazing Business Plan
There are endless articles, guides and websites dedicated to advising entrepreneurs
on how to write a solid business plan. But we wanted to hear some real advice first
hand, from the people who know it best - the entrepreneurs themselves.
We sat down to talk with several emeritus entrepreneurs to gain unique insight into
the do's and don'ts of writing a business plan. Here is what what we learned from
writing business plans from current start-ups.
DO
Be Aware of the Gap!
Generally, ideas for new businesses are created because entrepreneurs have noticed
gaps in the market that have not been filled. As your business plan develops, the
concept will also evolve. For this reason, it is important to return to the question
- what is the gap and are we filling it?
Know Your Audience
A good tip for writing your plan is to make sure that it can be understood by all
- especially by those who have no previous knowledge or experience with your product
or segment. This forces you to write clearly, precisely and with minimal technical
jargon. However, at some point you will be forced to present your business plan
to an investor or seed funder. You should have an additional version of your plan
that has less text and explanation with more financial calculations and economic
evidence.
Find the Right Format
Most entrepreneurs search online for a business plan template to use - rather than
creating their own. Although this can be a timesaving solution, be careful not to
leave out important chapters or explanations simply because the template did not
include it. Your product is unique, and your business plan should be too. Be aware
of what you want to communicate and what information is essential to convince investors
and funders that your project is interesting.
Be Flexible
Throughout the development of your business plan, the information you gather through
research and brainstorming will highlight problem areas or opportunities you may
not have realized. You should always consider how to refine your product so your
concept remains relevant. Do not become too rigid at the beginning and retain the
flexibility to adapt.
At the end of the day, it all comes down to believing in yourself and in your product.
If you put in work, then success is sure to follow.
DO NOT…
Be too Slow!
It is often the case that you have a great idea, but you sit on it for a while before
writing it all down. As soon as you have the idea, start building a business brainstorm
- try using the Business Model Canvas on Canvaniser. Once you have formulated the
concept, start writing the business plan. The longer you wait, the less motivation
you have and the more likely you are to drop the project.
Focus Too Much on the Goal
If you are only concerned about the end goal, the process of getting there might
overwhelm you. The team at Kalimbo Management (a young Berlin-based start-up) mentions
that although their team would take meaningful steps forward, sometimes they would
fall several steps back. Writing a business plan is a grueling process, but if you
divide your work up into manageable tasks, you can start to see real progress.
Ignore Feedback
Before presenting your business plan to investors, show your plan to your friends
and family. Take into consideration their comments, complaints and ideas, as they
can be extremely valuable. Often when you have worked so intensely on a project,
you lose overview. Discussing ideas with your peers is a great way to edit your
business plan.
Expect Too Much
Most people become frustrated because they set their expectations too high, and
end up disappointed. Understand that starting a company is a difficult process,
but it can also be very rewarding. Although writing a business plan might not be
the most entertaining part of starting a business, it is an important part of finding
funding. Be realistic about your product and make sure the evidence you gather is
convincing - not just for the investors, but for yourself!
Words of Advice
Florian Schemnitzer, product manager for Kalimbo Management, told us that “if you
are able, just start, don't be too scientific about it”. If you have a great idea,
do not wait too long before writing your business plan, you have nothing to lose!
Kalimbo will be an easy to use web application for event planning. Kalimbo's tool
will allow bands and musicians to have access to all the features they need for
calendaring, check listing and team management - all in one smart application. Stay
tuned for more developments!
Resources
Here is a list of excellent resources to help you write your business plan as well
as inspirational articles for entrepreneurs at all stages of starting a business.
Bplans.com
Wired.co.uk
Entrepreneur.com
We invite you to visit our Small Business
section to learn more about opening your own small business.