Tuesday, August 4, 2009

How-Tos and Whys of Business Plans

We talked this week about the importance of writing a business plan. But how is it done?

Writing a plan typically takes two weeks to several months. An average business plan runs about 40 pages, including financial statements.

If you're writing a business plan for internal use only, you can write a shorter, less comprehensive plan that runs 12 to 20 pages. Just don't skimp on the financials! That's the most important part when it comes to making your business plan use-able.

And you do want to make it use-able, and useful. It's crucial to not just write a business plan but to also use it!

Don’t write it and file it away. Write it and refer to it.

Do a quarterly budget analysis that compares projections with what has actually happened with your sales and expenses. You can then adjust your projections so they are more aligned with reality.

With this kind of “active plan” you will always be ready to go to a lender or an investor without feeling unsure of yourself or your future business. You’ll have the goods to back up your optimistic outlook for your firm.

1 comment:

  1. Hi,
    You have done a good job! Business plan should not be more than 20-30 pages. I totally agree with you, give relevant information which inpires investors and avoid adding irrelavant material.