For some, the thought of writing a business plan is as pleasant as the stomach flu, yet the truth is that a business plan shares more in common with a diary and a to-do list than it does with a college term paper. So, break out that favorite pen (or word processor) and let’s get started!

Before you begin…

• First, there are no hard and fast rules for writing a business plan, it is written by you for you!

• Second, writing your business plan is an ongoing process and doesn’t end unless you’ve sold your company, quit, or failed miserably.

• Third, writing a business plan is not about writing the plan, it’s about planning to set your business up for success.

Writing a business plan…

As mentioned before, there are no hard and fast rules for writing a business plan. Do you really need an executive summary, 3-Year pro forma, and sales forecasts for the next five years? Only if you’re going to find a benefit from these things.

The example below is the structure I used to get started, so feel free to mix it up, reorder, and modify it to suit your needs:

- The Vision -

What exactly is my business?
What problem does it solve and why is my solution the best/most unique?
What benefit does it provide to my customers?

- Branding -

What is my story and/or message?
What is my product’s personality, soul, and voice?
How will I translate the above into an identity, logo, website, business card, et cetera?

- The Numbers -

What does it cost to build my product and/or provide my service?
What are my expenses and are there any hidden costs?
What profit can I expect to make per item and is it acceptable/realistic?
What is my budget and what will I do if I go over?

- Beta Testing -

What existing resources/products can I use to help create my product?
Do I have someone in mind to try out my product/service?
How will I collect and utilize feedback?
How will I turn my beta users into paying customers?

- Sales and Marketing -

How will I get my initial customers?
How will I provide customer service and collect/utilize feedback?
What marketing channels should I explore - web, radio, print, et cetera?

As I mentioned before, this is what I used to get started and there are other pieces to the puzzle that can be incorporated such as funding, an exit strategy, employees, management structure, break-even analysis, profit and loss, et cetera. Ultimately, utilize items that will help your business grow and succeed now, and…

Beware Planning Paralysis!

Your goal is to set your business up for success; your goal isn’t to become an armchair entrepreneur pondering every detail of your business plan. If you don’t know the answer to something, do some research, ask SCORE for advice, try some focused beta testing, and/or make an educated guess. Whatever you do, keep moving and don’t put your business on hold by sweating over every little detail. Inevitably, there will be things that you won’t be able to account for so at the very least, plan for the current state of your business vision and fill in the blanks as best you can. And last but not least…

Frequently Revise, Revise, Revise!

“Be stubborn about your vision, but flexible in the details” - Jeff Bezos, Amazon.com CEO

Things constantly change, so writing your business plan should be an ongoing, organic process. Plus, imagine the waste if you draft a business plan only to bury it in your documents and forget about it.

Make a habit of periodically revising and updating your business plan, it should remain fresh, nimble, and flexible because you never know what disruptive events or changes await. Also remember that the longer it sits idle, the more it becomes outdated and less useful.

In conclusion…

Entrepreneurs do not need a business plan to succeed, just ask Pierre Omidyar who created eBay (initially AuctionWeb) on a whim. Yet a business plan is a simple and useful tool for collecting your thoughts, prioritizing your actions, and planning for your business’ success. Also remember that a business plan is there to help and should not get in the way of moving forward with your business.

Now it’s your turn, has this post changed your mind about writing a business plan or do you have your own tips on writing a business plan? Feel free to contribute or ask questions by leaving a comment!

Sincerely,
The Closet Entrepreneur

Post Scriptum: As an additional resource, here are 5 Apps That Make Your Business Plan More Useful.