How much should you write in your business plan?
I guess a lot of people think that a business plan should be an exhaustive document detailing absolutely everything about you and your business.
But this is just plain wrong.
You'll be glad to know that the business plans I have developed have always obtained finance from banks. And do you know how long these plans are? Just 20 pages.
And those 20 pages include the content summary and financial section!
Why just 20 pages?
Every person who has downloaded one of my sample business plans is astounded (and thankful) that there isn't really that much to write about. And the reason for this is your readers (generally, your bank) are just looking for a few important areas of your business, and those are the areas you need to concentrate on.
Because lenders want to mitigate their risk, they want to see how you project your profits. They want to know how high are the chances of getting their money back that they lend you.
So banks concentrate on your financial plans.
Of course, they want to know about you and your business in general, but they want to see how many products and services you will sell and what profit you make on each item.
They want to see in detail that your projections make sense. They don't want to see that your business will grow exponentially in the next 12 months - they want good and steady progress.
Other important areas in your 20-page business plan
Once people are comfortable with your financial projections, they want to be comfortable about you. Why you? Well, you ARE the business. Businesses thrive because of the people running them.
You'll need to show:
- Why you can run your business and you have the right background, and
- You're capable of being a success and your experience of managing and juggling everything that goes with a business will see you grow your business over time.
Tomorrow I show you how to develop your financial plans.
To your success,
Best-Selling Author, Speaker and
Business Growth Strategist