I mentor small businesses. I am always amazed by the innovative ideas that I hear from entrepreneurs whom I have had the privilege of meeting.
Not many people have well-written business plans. Most use the internet to plan.
They are impressed with the large number of documents that they have downloaded from the Internet. But what they don’t understand is that a business plan designed for one region of the globe cannot be used to execute his business.
Although business concepts are universally similar, execution and sustainability vary depending on the market and environment.
I’ve seen business plans that glorify projections, and the market analysis clearly shows a significant profit.
A business plan is a snapshot of the issues that need to be addressed. You can see the challenges, risks, and competition in a business plan.
At least three business plans should be prepared before you start your venture.
Individual
This plan is the most honest of all. It is also known as the “naked business plan.” It covers everything, even risk and the possibility of failure. It is impossible to learn any business lesson without discussing risks and risk management.
Every activity has risks. Business risk management is key to identifying and planning for the mitigation of these risks. There are some risks that we can control, while there are others that we cannot.
The plan should reflect who you are as a person, your strengths and weaknesses, and how you will deal with obstacles or closure.
This should answer questions such as: Can you persevere in difficult times? Are you driven to be your boss? Are your life decisions often right? Are you able to see the entire business from start to finish? Are you able to work long hours and have the energy to make a business successful? Are you a specialized business person?
The plan should include financial projections that cover at least five modules. The project should be completed by you and prepared for all eventualities.
Investors
This is what I call the headlines business plan. Investors only get one chance at you, so make the most of it.
This plan will show who you are working with and how much you plan on investing to make money for investors. A well-constructed plan should include both short- and long-term financial gains.
This document shows confidence and experience that will help you decide if you receive the initial investment you desire.
These projections can last from three to five years. They are required to demonstrate a sustained profit. It is not a good idea to glorify your plan or try to raise a lot of capital for your start-up.
It is essential to mention your competitors and how you plan on creating your niche market. A business plan without a SWOT analysis can raise red flags. It is possible that you will not be eligible for financial support.
Get professional advice and pick the right team to help you find your niche.
Don’t spend too much. Many people believe that it is essential to have a lot of money in order to start a business. This is a mistake. You can make a lot of money with very little.
Universal
This is the plan you started with. It’s the “sitting research” that helped you to determine the pros and cons of your venture. This plan was derived from various Internet searches in order to better understand the issues you will face.
This is the longest possible business plan. Although this plan contains a lot of information, you need to filter out irrelevant information. It is challenging to cover all the details of your venture without a plan.