The fear of writing a business plan is common among entrepreneurs and business owners. They say it takes too much time and is too tough to complete. In actuality, what they are fearing is the lack of knowledge to write a business plan. If you know what you’re doing, you will realize how easy it is to write a business plan in under an hour!
You might have a fresh business idea every day if you’re a passionate entrepreneur or business owner. But how do you decide which of your ideas are worth following up on? This is why you need to write a detailed business plan to objectively evaluate any business idea. Yes, it may take time to write one, but it will tell you whether your idea is good or not. It will show you whether or not your business idea is feasible.
To make the task easy for you, here I have come up with a comprehensive guide to assist you in creating a winning business plan. We go through each section in great detail and break it down so you can have a good business plan to get started.
Know the Definition Before You Learn to Write a Business Plan In Under an Hour
The majority of new businesses are unaware of the significance of developing a business blueprint. Business plans are essential because they assist in defining your business objectives and determining the procedures necessary to attain them. You can’t achieve success until you first plan for it!
Before they even know what they’re doing, most entrepreneurs develop a vision board, assemble a team, and begin presenting their ideas. No wonder then that their fundraising efforts fall flat on their faces. This embarrassing situation can be avoided with a business plan, which allows you to rapidly comprehend your mission. As an entrepreneur, you have a clear understanding of who you want to serve, and what resources you’ll need to succeed.
A business plan is a document that outlines a company’s objectives. It can be as brief as a few pages or as long as several hundred. Ideally speaking, a business plan should include precise information on the company’s resources, market research, financial information, and more.
What Are The Advantages of Creating a Business Plan
A business plan can be considered the roadmap for your organization which is necessary to demonstrate your belief in your product or service. It also assists in staying focused and on track with your objectives. This written document about your company’s future is intended to assist you in deciding what type of business you wish to start.
Also, a business plan helps in determining what kind of future you want for your firm. It can help you figure out how much money you’ll need, what kind of market to target, and how many employees you’ll need.
Why Do You Need a Business Plan?
As already mentioned in the beginning, writing a business plan appears to be a daunting task for entrepreneurs and business owners. The fact is, a perfect business plan has numerous advantages. It’s one of the most beneficial things you can do for your company. All serious businesses, in our opinion, should have a business plan.
Here I am going to explain how to streamline the process by concentrating on a few key elements. But before that, let me narrate four reasons why every company should have a business plan:
A Business Plan Opens Up A Communication Channel With Business Partners And Customers
A business plan is a written declaration of your company’s objectives and strategy for achieving them. This is especially crucial in the early phases of your business when you’re still figuring out who you are and what you want to accomplish.
Sharing your plans with stakeholders, such as customers and partners, is critical since it helps you express what you want to accomplish. This step improves their faith in you and provides them with some insight into your long-term objectives. Your business plan serves as a single point of contact for all stakeholders involved, providing all pertinent information.
You Can Measure The Business Progress Better
Make sure you have a clear knowledge of the tactics you’ll employ to attain your goals before using a business plan to measure them. Then, using metrics relating to certain stages of the process, you can assess whether or not this target has been fulfilled. For instance, you can assess the marketing ROI, new clients acquired per month, and conversion rates for marketing efforts, and compare them with the targets as set in the business plan.
Your company plan should outline your objectives and tactics. You can refer to it whenever you’re stuck or don’t know what to do next. You may also utilize it to ensure that all new employees understand the company’s strategic goals by using it as a reference point.
A Business Plan Is The Best Tool to Demonstrate the Feasibility Of Your Business
It assists you in keeping track of revenue and spending sources, as well as any dangers. By comparing predicted income and expenses, you can estimate the feasibility of your business. This precise breakdown should reassure you that your business can be profitable. If your calculations demonstrate that you are losing money, you should adjust your company strategy until you find something that is a net positive.
This financial analysis is one of the most crucial elements in your company’s development. It demonstrates whether or not your business idea is feasible.
You Need a Business Plan To Obtain Funding
Investors are more likely to invest in your startup if you have a strong business strategy. It helps demonstrate to potential investors that you are serious about your product and its applications. A well-written business plan is a vital step in the process since investors want to know that they can trust the individual they are supporting. They also want to know if you have a sound plan in place for the company’s future growth.
For both a business owner and an investor, a well-written business plan can reduce financial risks. At the end of the day, money is the most important factor for every investor. If the figures don’t add up, investors are unlikely to support your venture.
How to Write a Business Plan in Under An Hour?
If you are planning to write a business plan in an hour then consider writing a lean business plan. But what exactly is a lean business plan. These plans are the polar opposite of traditional business plans. Lean plans are concise and only cover the essentials of a business. They’re akin to rough drafts of typical business plans. So, why would you make a lean business plan rather than a conventional one?
To begin with, lean business plans are simpler to draft. Getting one produced and created takes less time. They’re also simpler to modify and improve. They are, in fact, designed to be modified. The basic purpose of lean business models is to update them on a frequent basis to meet the current situation of the market and the company. These strategies are particularly well suited to new businesses that lack clearly defined processes.
A lean business plan is written for people who work for your company. Such a plan can assist every person on the team in comprehending the company’s direction. On the other hand, you need to devote time and resources to writing a standard business plan if you want to communicate your strategy with people outside your company.
Also to note that lean business plans don’t help get financing from banks and prominent financial institutions. Because your investor is interested in checking a detailed business plan before they decide whether to fund your business or not.
The PDCA Method to Write a Lean Business Plan
If you are planning to write a lean business plan then you should be aware of the PDCA method. It is built around cycles of planning (P), doing (D), checking (C), and adjusting (A). Needless to say that the PDCA framework demands regular modifications.
You begin by developing a general strategy, which is then evaluated in real-life scenarios. You collect and analyze feedback from the implementation phase. The approach you planned in the first phase is then adjusted based on the feedback, and the cycle is repeated. As you can see, this model can assist you in making tiny but significant adjustments to your business’s operations. Since the business environment keeps changing continuously, it makes sense to utilize a simple business plan that can be easily and rapidly altered.
Let’s now take a look at what your lean business plan should include. You should remember that there is no set format for lean business strategies. You can make something absolutely unique and include crucial information for your company. The elements we’ll go over are similar to all lean business plans, regardless of the type of your business.
Decide a Strategy – The Key Step to Write a Business Plan in Under An Hour
Your strategy should focus on answering key questions like
How to do the business?
What types of problems do you intend to solve?
How do you market your product?
How do talk about your solutions, and
Who do you sell to?
You must know your clients and be well-versed in the benefits that your products or services give. There’s no need to go into great depth. We recommend that you design everything in bullet points. Thus the one reading it can skim and read the plan quickly. You want your team members to refer to the plan on a regular basis to remind themselves of the most crucial components of your company’s operations.
Plan The Execution
This section discusses how you intend to carry out your plan. What good is a strategy if you don’t follow through on it? In this part, you’ll specify which marketing platforms you’ll employ and the types of communications you plan to do, and with whom.
If your business demands so, you can divide your customers into separate categories. And then it’s not only about marketing when it comes to planning the execution. In this section, you should also talk about your employees and funding sources. Describe how you intend to hire new employees and receive the funding in the initial stages. If you have a plan to implement a staff augmentation process to reduce costs, you can mention that too.
Remember that this business plan is intended for your team members as well as management. So, you don’t need to discuss everything in detail.
Talk About Specific Indicators
This is where you keep track of everything you need to monitor. Make a list of all the assumptions you had to make in order to compose the strategy and execution sections. Also, prepare a list of all the problems/ risks that come with your business plan.
This is also the section where you set the most essential performance indicators. If you want to objectively show how well your business is performing, you need solid things to measure. Expectations and significant goals can also be included, and you can track how effectively you’re meeting them.
Share The Important Business Numbers
Financial planning is a key aspect of traditional business plan writing. But this is not the case with a lean business plan. You do not require to be explicit and yet you need to present the most crucial business data in this section.
Rather than going into great detail, concentrate on the most crucial financial figures that matter to your company. Thus you need to indicate the sales forecast, expenditure budget, and cash flow prediction.
Writing a Business Plan in Under an Hour- Is It Right For Your Business?
As evident from the above steps, a lean business plan may appear to be a straightforward answer to the most common problem of business owners, i.e., creating lengthy and complex business plans. We recommend that you start with a lean plan strategy, irrespective of whether you intend to expand it into a full plan later. Then you can carry on with the lean plan or utilize it as a starting point for a standard business plan.
If your startup works with cutting-edge technology that changes frequently then a lean plan is perfect for your business. Else if you’re in a brand-new niche that’s growing fast, you should write a business plan that can be updated quickly to adjust to the changes.
Keep in mind that a lean business plan is pointless unless you use the cycles to monitor and change it on a regular basis. Plan your approach, put it into action, track it, and make improvements as needed. Hopefully, each cycle moves you closer to your business objectives.
Also, remember that a lean startup plan isn’t always sufficient. There are some circumstances in which you will be forced to produce a full-fledged traditional business plan.
In this article, we have tried to cover the fundamental concepts of business plan writing. These, we believe, are more than enough to get started! However, make sure you know all the mistakes to avoid as you sit down to write a business plan in under an hour.
Sweta is a veteran content creator, passionate traveler, movie enthusiast, music lover (reasonably good singer!), an informed reader …. and a coffee connoisseur! She has over 10 years experience in developing content for small businesses, internet marketing firms, website development companies and internet entrepreneurs. The experience has helped her develop in-depth knowledge about small business online which she now shares on the OnlismallbiZ platform. In her own words, “I am a dreamer and a doer!”