Business plans are vital for every company and they might be confusing. This is mainly because the process of creating a business plan has changed considerably. What you could apply in the 70s you simply can’t apply now. The good news is that the basics are more or less the same.
Let me shed light on the basics as well as the main changes in business plans.
- Business plans are valued based on the impact it has on the business. Business plans are barely affected by the appearance, ideas, writing, and formatting. You may spend hours and days writing a business plan but if you do not execute it, or in better words, if it does not lead to action, the business plan is simply not good enough.
- Business plan is more like a process. You don’t just create it and forget about it. You have to keep reviewing and updating it according to the progress and growth. This means that business plans mainly involve a lot of planning.
- Your business plan should be deliberate in that it should cover your entire business. However, it should only cover what is absolutely required and vital.
- You should not mistake a business plan. It may contain numbers and statistics but that doesn’t mean it is about accounting. In the business plan you give aggregates. In accounting you have to be very specific.
- You have to review and update your business plan often these days. Back in time going through it once in a few months was enough. Now you have to check your plan once in a few weeks.
- Business plans don’t need to be very long today. Back in time investors actually demanded extremely long plans that ran for around hundred pages. Today, business plans are not longer than twenty-five pages. In fact, some plans are only ten to fifteen pages long. Just make sure you add all the important information without getting too much into the details.
- A great business plan includes not just text but also projections, lists, and bullet points. Also, people have gone completely digital. Business plans are not on paper anymore.
Follow these pointers while creating or updating your business plan and you’ll do just fine.
Business plans have changed over the years. You should understand the fundamentals that still apply today as well as the changes and updates in business plans. Only then will you be able to furnish a great business plan.