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When sitting down to write your business plan, the first thing you must think about; what are your goals with this document? Are you trying to attract investors, get approved for a business loan, or are you applying for grants? Depending on your target audience, you will need to custom tailor your business plan to what they are looking for, but do not worry; it is not as difficult as it sounds.
If you are looking to attract a venture capitalist or angel investor, you may skip the typical business plan and focus on a pitch deck instead. In this video, I will cover business plans only. Would you like me to make a video on creating a pitch deck? Comment down below and let me know.
Typically, business plans fall into one of three types:
1. A one-page business plan summary
As the name implies, this document summarizes your business goals in a simplified format. It's ideal for introducing your concept to potential investors, who may not have time to peruse a lengthy document. This easy-to-read format, viewable at a glance, is perfect for initial meetings, and it offers an essential jumping-off point-though you may need a more detailed plan in the future. This is similar in concept to a pitch deck but different in how it is formatted.
2. A lean startup plan
Slightly longer than the one-page plan, this includes a summary and a bulleted list containing your businesses financial information, strategies, metrics, and forecasts. Since this type of business plan mainly functions as an internal tool to help guide you and key staff members, it's unnecessary to include all the sections and information of a formal traditional business plan. This simple-to-navigate five to 10-page document should contain your strategy, the tasks you need to complete to achieve your goals, and their due dates, projected sales, spending, and cash flow. The main purpose is to give you a clear objective and goals for you as your startup operates during its first year.
3. An external business plan (a.k.a. a traditional standard plan)
If you plan on getting a business loan, or a grant, you'll most likely need to create a more formal business plan. Since you'll be using this document to explain your strategies for your business with those who may finance or join your company, you'll want to delineate your plan in detailed sections clearly.
No matter which type of plan you choose, it's advisable to regularly update this plan (at least twice a year), as it is intended to guide your company's growth-and help keep all internal members of your team in the loop. As such, it should evolve organically as your business does. A business plan is a living and breathing document, not one you write and forget about in your Documents folder on your computer.
Before I go over what should be in each section, a few tips to keep in mind throughout the document.
1. Keep it simple
2. Know your audience
3. Know your competition
4. Keep it real
Executive Summary
Business Organization/Legal Structure
Marketing Sales
⚠️ ⚠️ ⚖️⚖️ I am not a lawyer, CPA, tax advisor, realtor, financial advisor, etc., I have absolutely no licenses/certifications in anything related to these industries, I am just a dude on the internet. So, in full disclosure: the information I provide here is for "entertainment purposes only!" You should seek counsel from competent and certified individuals if you have questions. I may receive commissions when you use my affiliate links.
