Top Factors To Consider When Making a Business Plan

New startups with a solid business plan can refer to this guide time and again when setbacks arise.

More than a pitch for VC or angel investors, a good business plan serves as a roadmap on how to run a profitable entity.  

More than a pitch for VC or angel investors, a good business plan serves as a roadmap on how to run a profitable entity.

Factors to Weigh Before You Create a Business Plan

Standard business plans are characterized by the following subsections:

1. An Executive Summary – If someone were to ask what’s the end goal for the business, an executive summary succinctly describes this for you.
2. Market Analysis – In the market analysis, due diligence is completed to figure out one’s competitors and target audience.
3. Operation Plan – How will your goals get from Point A to B? Will a hierarchy of staff be hired along with a small business attorney to confirm legal processes? Or, will you be a one-person show? The operation plan illustrates the basic structure and management strategy.
4. Financial Plan – Experts agree that one of the main criteria for composing a good business plan is getting the numbers right.

The business plan is ultimately not set in stone. However, entrepreneurs who plan first before executing any other step tend to fare much better compared to those who don’t.

Savvy Business Planning Advice

To maximize the usability of your business plan in the future, ensure it’s:

Realistic – It’s one thing to have a business plan and quite another to apply it in the real world. To leverage this super tool, conduct a series of in-depth research to understand various aspects of your market. But don’t overthink it either. Using feasibility studies, vying startups can get a clear picture of what checklists must be marked off to run the business like a well-oiled machine.

Detailed – A high-quality business plan is a blueprint you refer to when building up a business from scratch. As such, don’t skimp on the details. Some recommendations include outsourcing to a financial planner for setting realistic fiscal projections and getting a small business attorney – who’ll serve as a second pair of eyes.

Goal-Oriented – What are your short-term and long-term goals? With a business plan, you set the standard for the quotas you want to achieve each day, week, and year. Ideally, your business plan should demonstrate annual, 5-year, and 10-year projections.