Tips to create an effective Business plan

Business plan is a blueprint for what your company is going to be like in future.. If the plan is solid and detailed your company is may fulfill your business goals. Listing all the details you actually know where you are and how far is your destiny. Right plan could be even used as a tool to attract investors, partners and talented employees.

On the other side, entrepreneurs generally are very excited to get started, without listing the pros and cons of the idea, or sometimes they do write, but they do not take this part very serious and rush through the process. Ultimately, they see repercussions for not paying attention to this important aspect. In this article  I will  bring up some important points that would help you write an effective business plan.

You must plan Cash Flow

I once happened to visit a company who have been providing printing solutions. While discussing owner mentioned, that on paper his business is going great. But there is been a lot of cash flow issues. On prompting, he said they’ve been providing solutions on credit, there are tons of bills piled up but customers are not paying their invoices.

Usually, what has been seen is people tends to focus on profits, how can be a business profitable. It must be focused obviously, but even more important is to consider cash flows, which speaks how much cash your business has in hand. Neglecting cash flow leads to bankruptcy and collapse. So it’s of utmost importance to make a strategy to manage cash flows and make it part of your business plan.

Idea alone is not enough

If you think your idea alone is good enough to work on its own. You are probably fantasizing an ideal situations. You must have an eagle eye on finer details associated with your idea. You must analyze what practically can be done. Take in consideration all the ground realities and plan accordingly. Instead of visualizing and planning for top level generic details, like what has to be done. Plan should be more towards specifics addressing “Hows”, “Where” and “When” aspects of the idea.

Be more specific

When you are setting goals, planning actions, planning target audience and listing expected growths. Avoid vague descriptions as “Significant growth expected in two years”. Instead, mention things in figures as “40% sales growth expected in first year and so.”

People sometimes resist to be more specific, reasons could be that they are either lazy to analyze some quantitative details or they fear of being wrong. Being wrong is okay, but making measureable and actionable targets is necessary.

Prioritize Everything

It is simple enough to understand that everything couldn’t be done at once. Not even in business, but in all other aspects of life, individual must prioritize things that is to say giving tasks weightage according to their importance. In business filtering tasks and finding the right sequence of implementation leads to a quick success.

Do your Research

Make sure you are business plan is based on the research made about market, audience not written on top of your head only. Bringing more research table is never a bad idea. Finding more quantitative data and planning according to that data and some ideas from personal experience will lead to a good business plan.

Properly organize your plan

Your plan is not supposed to be read by you only. It must be organized in a way that investors, partners and new hires can easily make sense out of it. Sloppy work organizing will leave a bad impression even though your idea is amazing theoretically.

Mistakes mentioned individually won’t destroy your business but together they can affect your business significantly. In reality business plan are never perfect, you will have to iterate and tweak several times to find a better plan that would work for your business. But planning damage control at pre stage is always beneficial.

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