Best Practices for Writing a Business Plan

A business plan is a blueprint that outlines how to set up and run a business on a daily basis in order to reach long term goals. It’s also crucial in attracting investors and customers from outside. It’s an absolute must for anyone looking to start the business of their dreams regardless of whether it’s an individual or as part of a larger corporate division. It’s not a surprise that so many studies show the high failure rates of businesses without a well-thought-out and executed plan.

While every business plan is unique depending on the requirements of the company and its goals, there are a few best practices to be followed. The first step is to identify the audience that the plan is for. This will help you determine the level and language of the document. This will also help you decide which sections to include or eliminate.

The next section should give background information about the business. This can be done by providing an official description of the company that highlights the distinctive qualities of the business and emphasizes its distinctness from its competitors. This can include the legal structure of the business, such as whether it is a sole proprietorship, LLC, partnership, or corporation and the number of employees.

The next section will provide an in-depth market analysis. This includes the market that it intends to target the size of it and the competitive landscape. It’s also helpful to highlight any unique advantages the company enjoys like industry knowledge or a team of leaders that has extensive experience.