A business plan like any other write – up can either be good or bad. And if you want to know the difference of a good business plan from something that can be mediocre or even bad, then read on. But first off, let us start with giving everybody an idea of what a business plan is.
As implied, a business plan is a document that specifies and discusses the following:
- The company’s nature and identity
- Your objectives and the purpose of your existence in the world of consumers and entrepreneurs.
- The products you sell and offer
- Your marketing strategies
- The goals that you plan to achieve
- Your niche – the market that you plan to conquer
- Your plans for the business’ future
- And of course your financial standing prior to starting
By having all those information, you can see that a business plan is very much like a blueprint that will help you or anyone start and manage a business regardless of its nature.
Now that you realize its importance, the next thing that you should start working on is learning how to make one. But before you have the urge to get your computer going and start writing, here are the qualities of a good business plan that you have to keep in mind.
- A business plan should be detailed. In listing your products and services for example, you should not really stop by just enumerating them. You also should write down the descriptions and scope of your products and services, touch base on production and identify means on how you can market your “brain – child” to your targeted niche.
- It should include a market research that identifies your competitors, their share of the market and the range of the products they produce. By learning how they conduct their operations, you may learn tricks of the trade in the business you want to enter and you also get to have a basis on what you can do to excel.
- It needs to have a list of everything you need. Note that the word everything here comprises of the equipment, technology, raw materials, financial and other resources that you may need when starting and running your business venture. Having all these listed will give you an idea on how much capital you need before you start and how much money should you make in a day to make your business survive.
- It also needs to be written in formal format and style. You have to remember that a business plan is something that you may have to present to your business partners, financial firms and banks. So if you can, refrain from using slang in any part of your plan.
- Finally, a business plan should be error – free. This is important because your business plan defines who you are as a business person. If it turned out sloppy, then that does not speak too highly of you.
Again those are five characteristics of a good business plan. Now that you know of them, you can start your research and start drafting your write – up.