9 Tricks for Writing A Business Plan That Makes Lenders Happy
Writing a good business plan might seem like a challenging task. However, having a clear and effective one is absolutely essential for entrepreneurs who are looking to raise their chances of success. Below are nine tips to follow for writing a plan to catch lenders’ attention.
Market Research
Before writing your plan, it is a good idea to research the market you are looking to get into. Investors place great importance on how well you know your market and how thoroughly you have researched it. Market research is crucial for entrepreneurs because it helps to ensure the plan includes market size, how it will grow and how they plan to enter.
Know Your Audience
No matter what type of business you are thinking of starting, one highly important business plan tip is to write from the viewpoint of the audience. Think like the lender or investor and determine what the purpose of the plan is. For instance, is it to discuss future plans? Or, is it to obtain funding? Whatever the purpose is, remember to tailor your plan to each different audience.
Numbers Matter
The numbers featured in your plan will likely be under scrutiny, so all costs and sales predictions should be documented in detail. Have someone who is an expert in math help you with creating break-even charts or cash flow summaries.
Focus on Opportunity
A good business plan should also include a focus on opportunity. If it is investment that you seek, it is essential to thoroughly describe the opportunity available. Tell the investor why it would be most beneficial to invest in your particular business.
Understand the Competition
Any business expert knows that understanding competition is very important. You need to know the nature of the competition and its bases in the industry. Consider whether the competition is high or if it is lacking. Also, think about what it is that competitors are doing successfully.
The Executive Summary
One of the most important parts of a business plan is the executive summary. This is basically a summary of your whole plan and it typically is included in the beginning. The executive summary is great for investors who are pressed for time. If your summary is good, they will probably read on.
Include All Key Areas
When creating your plan, it is additionally essential to ensure all the key areas are covered. Remember to include sections for company and operation plans, services or products, management team, finance, marketing, competition and the market.
Short, but to the Point
While a good plan is concise, it is also crucial that you pay close attention to the details. The reader needs to have enough information about how you plan to do things to make an informed decision. Also, ensure there are no mistakes or spelling errors.
A Second Set of Eyes
Finally, you should have someone not involved in the process thoroughly review your plan so they can provide you with constructive criticism. Follow these tips and you can be on your way to running the business of your dreams.
