When you’re done with your business feasibility study and you find that your business idea is feasible, the next step is to write your business plan. Writing a business plan is important, as it will be your guideline in running your business. Your business plan should explain exactly how you will run your business, with all the exact figures including the capital needed to start the business. You should also provide the calculation of payback period in your business plan. You can use all the calculation that you put in your business plan to do a review on your business in the future. You can compare the figures in your business plan to the figures that you currently have to see whether your business is running better or at least just as planned, or not.
If you don’t have enough capital to start your business and you plan to attract some investors, you need to put some extra efforts in writing your business plan. Investors are investing their money to get profit, so they would need to see an excellent business plan before they decide to invest in a business. Your business plan should explain how your business can generate profit, how long will the investors get their return of investment, and how much profit they will get. In short, you should try to see from the investors’ point of view when you write the business plan.
To attract investors, you need to provide complete information about the management, customers, description of products or services, marketing plan, and how your business would deal with competition. Most investors want to get the largest amount of profit by investing in the safest business. When you present your business plan, investors will likely to ask you lots of questions about your business. It is better for you to prepare yourself by identifying the questions that the investors may ask before you present your business plan to them. The questions that the investors’ ask usually related to the risks of the business and how you will deal with them.
This article is based on my personal experience in running some small businesses, so it is quite simple. Medium to large businesses definitely need a more sophisticated business plan.
I will post an example of a business plan soon.