Writing Business Plan

Writing a business plan is a very specialized undertaking. It requires great attention paid to detail, the ability to research a variety of materials to shore up one's points and the ability to create a compelling narrative for a project whose nature is essentially one based upon numbers. Sometimes entrepreneurs choose to write their own plans and sometimes they hire specialists.

A business plan that works starts from having a realistic idea. If a business idea doesn't make for a good business plan, it's a good sign that it's not a good idea at all. The best business plans are based on a vision, realistic numbers and attention to the market conditions in which the business intends to operate. This means research into competing businesses, understanding and making realistic forecasts about economic trends and having confidence in one's research. Writing a business plan should not be undertaken if the business idea itself is weak.

A business plan must pay great attention to detail. Not only must the business be described, but competitor's businesses must be used as a way to give perspective, the location proposed for the business must be analyzed for its advantages and disadvantages and the staff of the startup company must be described in terms of experience and what they bring to the proposed company. Figures must be accurate and presented in a way that fits with the narrative of the written plan. Most often, these figures are included in an appendix.

Some individuals recommend approaching writing a business plan as a marketing exercise. Essentially, the entrepreneur is attempting to use the plan as a way of "selling" the business to prospective lenders. Others recommend avoiding marketing and going for substance. Angel investors, in particular, tend to be sober individuals who appreciate less fluff and more substance. If one wishes to be assessed as more than a flash in the pan, sometimes it's best to dispense with fancy formatting and to go for substantive writing, preferably backed up with sources, footnotes and citations.

Writing a business plan is to write a living document. Remember that a business plan does not get shelved away once a loan is secured for startup. The business plan should be referred to regularly and updated as circumstances dictate. Marketing is one way to describe a business plan. For the best business people, however, it constitutes a strategic document of constantly realized value.