How to write business plan: A simple plan is the key to a successful and efficient proposal

A business plan is a key component in the success of any company and is a document that anyone considering a business venture should prepare. It sets out a roadmap that will take a business idea through the initial steps to start up and beyond. For this reason anyone considering setting up or expanding a company needs to understand how to write business plan concepts in a coherent and sensible manner.

Business plans needs to be considered on a case by case basis depending on the size, complexity and work of the company in question. However, there is a lot to be said for keeping things simple and understandable, and this can help in the success of a business venture.

A business plan basically takes the idea for a corporate venture and puts in place the steps required to bring this successfully to working operation. It is an important step in the initial planning process for any company and this applies to both large and small ventures. When considering how to write a good business plan, keeping things simple can make the end result more efficient and useful, and it is therefore something that anyone looking a setting up a company should consider.

Remember the KISS principle, Keep It Simple Stupid.

When considering how to write a business plan, the following are a couple of the main benefits of keeping the final document simple and to the point.

Easier to understand: A plan that sets forth the steps for a business to reach its corporate goals in a simple manner will generally be easier to read and understand. Business plans are used by company owners and managers who are sure of the merits of setting up a company. However, they are also commonly given to others, such as company backers and financers, who may need to be convinced that a company will succeed. Keeping things simple generally makes the business concepts involved far easier to understand for company outsiders.

Simpler to update: While business plans are generally prepared at the outset of a corporate venture, they are usually live documents that can help a company reach its ultimate goals over time. They should therefore be updated regularly and this is far easier to do with a simple plan. Company managers are therefore more likely to update a simple plan and this can help in the overall success of a business.

A business plan can range from a few pages of A4 to documents that run to hundreds of pages. Simple business plans are more typically aimed at smaller ventures and for those thinking of how to write a small business plan, the following are generally the key elements to include.

• Business Profile: A simple business profile should incorporate a few details to let anyone reading the plan understand its set up. This should include a quick description of the company and the services or products it offers. Other information can include proposed employee numbers, the markets served, potential competitors and the competitive advantages a business venture offers that will make it a success.
• Objectives: The objectives section should basically be used by company owners or managers to set out where they want the business to go. This can be broken down into a few different elements, although these need to be compatible in their outlook. Some of the options to consider include strategic, marketing, financial and operational objectives. A company owner should provide a simple explanation of each of these objectives and make them time specific. This allows the progress towards the objectives to be measurable, such that it is possible for a company to check on a regular basis how they are faring in meeting their objectives.
• Actions: This is basically the how-to section of a business plan and sets out a practical step-by-step guide of a how a company will achieve its objectives. It should include information about the critical employees and operations that need to be put in place to make the company a success. While the steps should be kept simple, the actions need to be set out in enough detail that the process for reaching the stated objectives is easily understandable by all those involved.

• Finances: Any company requires capital to move from planning to operation and this section of the business plan sets out exactly the finances required. For companies that are looking for outside backers this is a section that needs to be prepared carefully. It shows the money involved in setting up and running the company, as well as the projected cash flow for backers to recoup their investment. However, for owners that have sufficient capital, it is also important since it provides an indication of the profit they can make. This is obviously an important consideration in whether setting up a company makes sense.
• Problems: Any business venture will likely encounter some problems during start-up and operation. Taking the time to identify potential problems and how they will be dealt with can therefore be a useful inclusion in a business plan. It shows the owners have considered where things can go wrong and put in place a simple plan to effectively deal with these.

While any company owner needs to carefully consider the information they include in a business plan, the key elements shown above should provide sufficient information to make a valid business case. For those interested in how to write a simple business plan, therefore, these are the elements they need to look to.

When looking into how to write a good business plan there are usually a few things that need to be considered prior to commencing. Market research is one of these and sufficient research should be undertaken to make the business case for a new venture compelling. It can also be helpful to include the names of key employees that are critical to the success of a venture. Getting these in place before completing the business plan is therefore a smart move.

Knowing how to write a business plan can make the difference between success and failure for a company. Preparing a plan is critical in setting out the case for a business that shows how and why it will be a success. This does not need to be a complex exercise and a simple plan can be one of the most effective. Company owners should therefore consider this when preparing the business plan for their venture.