Plan Your Success in Writing
Consider many possible future scenarios for each business area of interest before you actually choose the business that you want to start. Once you decide what area to assault, the first step is to create a written business plan. This should be relatively short and simple. Any pro-forma financial statements (which you will attach to the plan) should be based on realistic assumptions that are explained in notations. Take courses in Accounting 101, Excel, and PowerPoint to get started.
In the initial drafting of this business plan, it is beneficial for you to identify your audience; decide if it is meant just for you, staff and management, or potential investors. Also, if you are premature with your big idea and just need some talking points for background consultants, rather than writing a full-blown “business plan,” you could instead write a “business model” in a few short pages. If necessary, you can create multiple versions of your documentation to meet the interests of various classes of potential stakeholders.
There are standard boilerplate forms for business plans available online, which are acceptable for simple plans and small investors; however, larger investors will prefer a thorough and clearly worded original document with detailed justifications for your assumptions, something that summarizes specific research that you have done in your industry.
Investors may want to review and approve of the proposed staff, the marketplace, the math, and other selected planning items mentioned in your plans before they agree to invest. This is why a complete business plan is best when approaching serious investor candidates.
Among other things, your business plan should document the expected startup costs and the costs to operate the business until it hits a “break-even” point. This will help reveal the level of financing that you require.
