Writing a business plan can seem a daunting
challenge. However, this skill is a vital requirement for any
entrepreneur or business seeking to increase their chances of securing
necessary funding. Here is a list of top ten tips for writing that
winning plan:
1. Write from the audience's
perspective.
The starting point for any business plan should be
from the perspective of the audience. What is the purpose of the plan?
Is it to secure funding? Is it to communicate the future plans for the
company? The writer should tailor the plan for different audiences, as
they will each have very specific requirements. For example, a
potential investor will seek clear explanations detailing the proposed
return on their investment and time frames for getting their money
back.
2. Research the market thoroughly
The entrepreneur should undertake market research
and ensure that the plan includes reference to the market size, its
predicted growth path and how they will gain access to this market. A
plan for an Internet café will consider the local population, Internet
penetration rates, predictions about whether it is likely to grow or
decline, etc., concluding with a review of the competitive environment.
3. Understand the competition
An integral component to understanding any
business environment is understanding the competition, both its nature
and the bases for competition within the industry. Is it a particularly
competitive environment, or one that lacks competition? How are the
incumbents competing---is there a price leader evident? Finally,
including a thorough understanding of the bases on which you intend to
compete is vital; can you compete effectively with the existing
players?
4. Attention to Detail
Make the plan concise, but include enough detail
to ensure the reader has sufficient information to make informed
decisions. Given that the plan's writer usually has a significant role
to play in the running of the business, the plan should reflect a sense
of professionalism, with no spelling mistakes, realistic assumptions,
credible projections and accurate content. The writer should also
consider the format of the plan, e.g., if a presentation is required, a
back-up PowerPoint presentation should be created.
5. Focus on the Opportunity
If you are seeking investment in your business, it
is important to clearly describe the investment opportunity. Why would
the investor be better off investing in your business rather than
leaving money in a bank account, shares or investing in another
business? What is the Unique Selling Proposition (USP) for the
business? Why will people part with their cash to buy from you?
6. Ensure all Key Areas are covered
in the Plan
Undertake research on what a business plan should
contain. Include sections on the Company, Product/Service, Market,
Competition, Management Team, Marketing, Operations and Financials. The
plan should also take on board the readers' various preferences for
viewing data. While many plans are predominantly textual, the plan
should include some simple colour charts and spreadsheets.
7. Do the Sums
The numbers will be subject to particular
scrutiny. Costs should be documented in full and sales predictions
should be both conservative and realistic. While costs are more certain
and predictable, a crucial factor in the success or failure of the
business will be the level of sales. If you are not particularly
comfortable with maths, have someone assist you in preparing a simple
cash flow and break even chart. This will help the reader understand
how many sales you must make to cover your costs, and also how much
financing you must raise to start up successfully. Remember, at the
beginning, there are a lot of start-up expenses in a period of
uncertain sales volumes. If sales are on credit (including via credit
card) it may take up to 4 weeks for you to receive the cash.
8. Executive Summary
Arguably the most important component of the plan
is the executive summary. This is a summary of the entire plan and is
usually contained at the start of the plan. It also tends to act as a
key qualifier for time-pressed investors--if they like it, they will
read on, if not they will go no further. It should be completed at the
very end of the business planning process and should have a 'wow
factor' that entices them to read further. In tandem with this, the
writer should also prepare a short 'elevator pitch,' a five-minute
overview of the key benefits of the new product/service.
9. Review Process
Once you have completed your plan, have it
independently reviewed. Select someone detached from the process who
can offer constructive criticism on all aspects of the plan. Your local
Business Link or Enterprise Agency should be able to assist with this.
This review should prompt further questions that will need to be
addressed in a revised draft.
10. Implement the Plan
Finally, a plan should always be viewed as a
living document and contain specifics regarding dates, deadlines and
specific responsibilities. It should be constantly reviewed and
updated, as well as being used in regular 'plan versus actual'
discussions. Business relies heavily on people taking actions and being
accountable for them. A winning business plan will help to ensure that
the business is fully focused on what is required to achieve the
company's goals.
Article Source: http://
www.articlesbase.com/strategic-planning-articles/top-ten-tips-
for-writing-a-bar-business-plan-853732.html
About the Author
Barry Chandler is founder of ManageYourBar.com, an
online toolkit for Bar & Nightclub Owners keen to standardize
their operations in an effort to increase profits. The online toolkit
allows bar owners & managers to download 100s of Pre-Written
Human Resource Forms, Bar Checklists, Cost Calculators, Business Plan
Templates, Excel Templates & Featured Articles updated weekly.
Sign up for the free weekly Profits On Tap Email by visiting
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