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1. Tips For Creating a
Good Business Plan

2. The following are some
pointers to consider
before creating your
business plan:

3. 1. THERE ARE SOME FOLKS
WITH THE BELIEF THAT
PLANNING IS
UNNECESSARY. BE THAT AS
IT MAY, PLANNING HAS GOT
TO DO WITH A GREAT DEAL
OF WORK. BE PREPARED TO
SPEND WEEKS — OR
MONTHS — COMPLETING
YOUR PLAN.

4. 2. though at the beginning, this
undertaking may appear
overwhelming, do not be
discouraged. All you need to
do is to break the project into
manageable chunks. One of
the most effective approach is
to put each of the following
steps behind a separate tab in
a three-ring binder. Fill in your
plan, making steady progress
toward your goal.

5. 3. While there can be volumes of supporting material at
your disposal, aim for a plan that is brief and succinct but
includes everything important to the business. Getting a
proposal of 10-15 typed pages, double-spaced is often
ideal. Leave secondary issues and details for discussion for
a later meeting.

6. 4. Pay much attention to your intended reader. The plan should be
utilized to organize your effort around your objectives in other to
ensure that you have all the bases covered. Investors or lenders are
interested in determining whether you will be able to achieve your
objectives.
5. Avoid highly technical descriptions of your products, processes, and
operations. Use layman's terms.

7. 6. A business plan as you see appears to be a "living" document.
Update it as your knowledge grows and whenever your strategies
become more concrete.
7. Be realistic — your projections should focus on the results
gathered from your analysis. Be honest about positive and
negative findings.

8. 8. Discuss your company's business risks. Your credibility can be seriously
undermined if existing risks and problems are uncovered by lenders or
investors on their own.
9. Avoid making vague or unsubstantiated statements. Take for instance,
you should not just conclude that sales will double in the next two years or
that you are adding new product lines. Back up your statements with
underlying data and market information.

9. 10. You may have two sets of business plans — one
internal, one external. To be an effective management
tool internal business plans usually are more detailed
than those presented externally.

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