If there is one thing that has remained constant in how businesses are created over the years, it is the indispensable, ever-so-sacrosanct ‘Business Plan’. The business plan of a company serves a similar purpose as a mind-map does when you ideate; it visually represents and puts down all the core and peripheries of a particular idea. A business plan is the heart of the business which explains how a business works and how it shall succeed.
It essentially helps entrepreneurs to break down the business into meaningful chunks and put in place processes like products, sales, budget, projections, milestones etc. However there are certain aspects which set aside a regular business plan from a great one. Here is a list of top 5 things which make a good business plan:
Long and verbose business plans make it tedious a reader to understand the business. Brevity comes with clarity of thought. Morever, the communication ought to be universal and not targeted at a specialised audience. When an idea is put forth succinctly in simple language, it ensures that all stakeholders, experts and laymen alike, are able to grasp the essence of the business. While the technicalities are important as in the case of a tech idea for example, they can be included in the appendix. Customizing communication is key.2. Protect the business idea and intellectual property
The business plan is the first pitch/expression of the entrepreneur’s business idea. In such a circumstance it is absolutely critical to establish evidence of its originality prior to revealing it to a third-party. An unprotected business plan, which contains the business’s IP and trade secrets, is an open invitation for theft by unscrupulous parties looking to steal your valuable work. It could be anybody from a competitor to a mere disgruntled employee. As business plans are often circulated amongst several parties, it’s important to ensure the safety of the business’ intellectual property.3. Create your pitch
Your business plan is your pitch. It needs to convey how you create value and tackle the pain areas of the customer. What is it that sets you apart from your competitors? What is the business viability of your idea? These are some important aspects which need to be included alongside an executive summary. It needs to allure potential investors and customers into realising why the industry/market absolutely can’t do without you.4. Dynamism
A good business plan is one which is constantly reviewed, updated and dynamic in nature. Planning doesn’t entail predicting the future and following it despite variations. It is a continuous steering process which is subject to regular review and course correction.
5. Keep it real
The most crucial measure of any plan is how realistic it is. An excellently researched, eloquently written and beautifully formatted plan for something that’s unworkable is a bad business plan. While assumptions are inevitable, externalities need to be considered thoroughly too.