complex sentences except if you need to convey
Now that you are aware of the reasons you require an outline for your company, and have conducted some research on the best sources of information that can help you create one. It's time to start writing everything down. The next pages will outline precisely the seven key elements of a business plan: what you should include, what you shouldn't include, how to work the numbers and additional resources you can turn to for assistance. Now is the time to get started.
Executive Summary
The executive summary will be found within the general outline of your business plan. It is found on the title page. The summary should explain the information you intend to communicate to the person reading it. This is essential. It is all too common for business owners to find the information they need on the 8th page. The summary should clearly define the goals you're looking for.
Description of the Business
The business's basic description must include a description of the business. When describing the industry, talk about the current outlook as well as potential future opportunities. Also, you should discuss the different markets in the business. This includes any innovations or new products that could benefit your business.
How long do you think your plan should last?
In the 1970s, when I began working on business plans, they were more lengthy and more complicated than the ones I see nowadays. Since business plans are becoming more common, they are more commonly used and used by many more people. It could also be due to the changing trends among investors and bankers who read business plans. Or it could be because there is less time to waste wading through documents!
Business plans today are all about the fundamentals. Good projections and solid analysis are essential. The importance of having a easy format that is easily read is higher than ever. It is essential to keep the business plan simple, if you want people reading it. Don't confuse your business plan with a doctoral dissertation or a life-long project. Keep the formatting and wording easy and keep the plan short.
However, don't confuse the simplicity of wording and format with easy thinking. The reason you're keeping things simple isn't that you haven't developed your idea completely. It's so you can get your point across quickly and easily to whoever's taking note of it.
Let's now get to the specifics of simplifying your plan.
Rein in your prose. Writing business is simple to comprehend. People will scan your plan and read it over either on the phone or scroll through their email. If you're writing the classic American novel, save the long prose. Here are the best strategies for preparing your novel.
Avoid using long, complex sentences except if you need to convey the purpose of. You can read shorter sentences and they're more easy to read.
Beware of buzzwords, jargon or acronyms. You may be aware that NIH refers to "not invented there" and KISS refers to "keep it simple, stupid" But don't think that everyone else does.
Use simple, straightforward words such as "use," instead of the "utilize," and "then," instead of "at this moment."
Bullet points are great for making lists. They are helpful for helping readers understand details better.
Avoid "naked" bullet points. It is possible to flesh them out by giving brief explanations when necessary. Simple bullet points can be confusing.
Make it short. The average length of most business plans is now less than it was in the past. It's now possible to convey all the information in between 20 and 30 pages of text, and 10 pages of appendices that include managers' resumes, monthly projections and other information. A plan that is more than 40 page will likely be difficult to summarize.
There are some exceptions. Recently, I was shown a plan for a chain if coffee shops. This included photos of proposed locations and mockups of menus and maps for other locations. Although the plan was less detailed, the graphics were of great worth. It is useful to include product images and location shots, as well as menus floor plans, logos, floor plans floor plans, signage and floor photographs.
Utilize business charts. Make it easy for viewers to understand and comprehend your important numbers. Utilize basic tables and charts to highlight the main numbers. Make the related details easy to find within the appendices. Also...
You can use bar charts to display at-minimum sales, gross margin, net profits and cash flow for each year.
The bars that are three-dimensional appear cleaner, but two-dimensional ones are easier to understand. It is important that numbers are clearly written.
Stacked bars can be used to see totals. If your sales are divided into sections then stack your bars in order to show the totals.
Pie charts can be used to display market share and market segments.
Display milestones and projects in horizontal bars. Labels are on the left. Dates are along the top. This is referred to as Gantt charts. They are hard to comprehend if you don't show the most important milestones and tasks.
Always include the source numbers close to the charts in a summary table so readers can reference them quickly and recognize the numbers on the charts. The numbers in the source are easily accessed by readers of business plans. That's frustrating.
It is mandatory to include charts in your writing. If the source numbers are not evident in the summary tables make sure you indicate which appendices have the detailed numbers.
b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b
Polish the overall look. Beyond the words the physical appearance of text should be inviting and simple to read. Take my advice.
Stick to two fonts when writing your text. The headings should be written using an easy sans-serif font such as Arial, Tahoma and Verdana. Standard text fonts such as Century Times Roman, Book Antigua, and Times Roman are recommended for the body text.
Avoid small fonts. Some fonts that are more legible are only fine at 10 points. The majority of fonts perform better between 11 and 12 points.
To separate sections, to distinguish charts from text and to emphasize tables, use page breaks. If in doubt, move to the next page. Nobody worries about having to turn over to the next page.
Use white space liberally. You'll be unable to read words crammed into small spaces.
b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b
Always make use of your spell-checker. Make sure you read the text with care to ensure that you don't use the wrong spelling of a word. Make sure the text's numbers are in line with the numbers in your tables.