(ThyBlackMan.com) Most of the stress of writing a business plan comes from feeling like you don’t know what to do. This is a daunting task even for industry veterans. For a first time business owner it can feel like you’ve failed before you’ve even begun. With stress like this, your judgment is going to get clouded and you’re going to start making mistakes. This guide tells you what to focus on with your business plan so you can have a great plan with less stress.
Get Rid of the Fluff
There’s a pressure to make things perfect when you’re writing your plan. Your business rides on it. Don’t worry if you’re not a poet. If words don’t come naturally to you, let the numbers do the talking. Your business plan is designed to focus on the really important parts of your business. Investors favor business plans that get to the point, according to Forbes. Don’t worry about making things pretty. If it’s clear and concise that’s good enough.
Show you’re a Cautious Investor with Examples
Everyone says that they’re cautious when it comes to business, but the truth is, most people aren’t. That’s why so many young businesses fail. If you have any business experience at all, bring that up when you’re pitching your financial section. If you guided another business through
tough times as manager or owner, that’s the kind of thing that you should be filling your business plan with when writing a business plan for your business. All the promises in the world aren’t as good as a single concrete example of your level head and good judgment.
Use a Conservative Scenario to Plan
Panic is the enemy of the business person. When you’re stressed, this doubles. You start wondering what you’re going to do in the event of a bad year. This is natural, but it’s also the fear talking. You can’t build a business on the assumption that you’re going to fail. You need to be optimistic when writing a business plan; however, you can proceed with caution. Craft your budget with the expectation that things are going to start out lean. Don’t go overboard, but tell yourself that you’ve already built a working plan with the assumption that things aren’t going to be easy at first. This will help control panic and can give you a boost if your business does do well at first. Nothing helps the spirit like knowing you’re performing above expectations.
Give Yourself a 10 Percent Cushion
To make your conservative business plan even sounder, cut your projected revenue by 10 percent. This is the measure that will give you more cushion when you start. If you can raise the money to float your company even when you’re counting on 10 percent less than a conservative estimate of what you’ll be making, you’re going above and beyond in the sound financial planning sector. Businesses that provide for this cushion have a much better chance of being around at the end of the year.
Focus on Your Executive Summary
If you’re looking for a place to show off your personality, you want to do this in the executive summary. This is the elevator pitch for your business. It covers the why and the flavor of your company, and it’s the hard sell. It’s what you’d tell your dream investor if you were stuck in an elevator with him. If you can really wow the investor in this one area of the business plan, you can relax in the other segments and give only facts instead of sizzle.
While creating a business plan can seem like an impossible feat, following these easy steps will help you to craft a clear, concise, and conservative plan that will put you on the path to business ownership.
Staff Writer; Calvin Jones