Writing a Business Plan: Why It Is Worth the Time and Effort

Looking to start a business but don't know how to write a business plan? Here's a guide on why you should take the time, and what exactly you’ll be covering in your plan.

Before getting started with writing your plan, it is essential that you have an idea of what type of business you want to start/implement. This can help narrow down the types of advice you will be looking for in order to create your plan.

The general types of businesses that might be suited for doing this are: 

1) A service-based company (e.g., catering services, manufacturing services), 

2) A product-based company (e.g. a supermarket, a boutique, an online business), and 

3) A classic start-up (e.g., a new app or website).

There are numerous websites out there that can help you decide what type of company you want to start. You can also talk to friends and family about what they think will be the most feasible for you to achieve. It is important that you do extensive research into the market and competitors in order to create an accurate plan. If you are not accurate with these aspects of your plan then it is likely that your business might not be as successful as you would have hoped. Lastly, take notes as you have these conversations as your business is forged from them and will be essential in your business’s success.

A business plan can be helpful for individuals seeking financial assistance for their ventures. It can act as a synopsis of the business, outlining who the owners and shareholders are, what the revenue and expenses are anticipated to be, and where that money will go when it is received.

This type of plan is useful because it promotes transparency and accountability between businesses and their owners/investors.  Since the investors see exactly how their investment dollars will be spent they feel more secure in their investment decision. This shows that the company has standards that apply not only to their employees but to themselves as well.

There are generally five main components of a business plan: an executive summary, business concept and product, market analysis, marketing and sales strategy, financials.

These components can be broken down into further pieces in terms of detail. For instance, the idea for the company could be broken down by target audience (who exactly will your service/product benefit?), why you think this audience would buy this product or use this service (brand awareness is important here), how you are going to advertise to these people (get creative!), etc. 

An annual or monthly budget should also be made for these aspects as well as for your general operating expenses. 

The profitability of the company would also be calculated as well. This includes revenue and expenses.

Once you have done this you should get a business advisor, such as a financial advisor or accountant to go over it. This is important because your plan should be written in such a manner that if there are any errors in the calculations then your potential investors can see them and make an informed decision about investing their money into your company

The type of business you want should also be included in your business plan. For example, if you are going to sell products on Etsy, you will include how much it will cost to start each product, how many products are expected to sell each month, what your profit margins will be, etc.

The key to writing a good plan is to be as specific as possible. Use real numbers and examples wherever possible. Write slowly, do not rush through this process.  If you are stuck on a particular section, put it off and come back to it later; the same goes for writing in general. This way your plan will be written from a position of knowledge and you will have something concrete to go by when starting your business.

If you follow this advice then your business plan should be well-received by potential investors and will open up doors for you that would otherwise have been locked.  You can find templates online for business plans if you would like help with the basics of how it is laid out.

Keywords: Business Plan, Business Planning, Business Proposal

The University of Sydney is a leading research-intensive university in Australia.  Its business school was ranked #2 in Australia by the Financial Review's BRW magazine for its MBA program in 2013. The school offers the following coursework degrees: Bachelor of Commerce, Master of Commerce and PhD degrees. Its research strengths are finance, accounting and tax law, management accounting and economics, marketing and strategy. It is one of two founding members of the AACSB in Australia.

The faculty currently has over 50 full-time academic staff. Most of these are researchers with higher doctorates or professional qualifications like Chartered Accountants or Certified Practicing Accountants. The faculty's research is focused on the following themes: capital management and corporate governance, innovation and entrepreneurship, leadership, management accounting and strategy.

The business school offers undergraduate degrees in commerce and international relations, graduate programs in accountancy, finance, international business and management as well as PhD programs. Its partner universities include Victoria University of Wellington in New Zealand; University of Cambridge; Imperial College Business School; University of Oxford; Warwick Business School; University of Munich; Tel Aviv University; Yonsei University in South Korea.

The McCombs School of Business at The University of Texas at Austin is highly regarded for its MBA program with alumni including Federal Reserve Bank president Richard Fisher and former Enron CEO Jeffrey Skilling.  Its undergraduate program features a number of majors including accounting, finance, international business and management and marketing.

The school offers five degree programs: the bachelor's of business administration (BBA), master in business administration (MBA), master of science in finance (MSF), master of science in management information systems (MSM) as well as a doctorate in business administration.

In 2013, McCombs School was ranked 5th overall among U.S. public universities by U.S. News & World Report for its online MBA program and the Graduate Accounting Program was rated #2 at public institutions by Fortune magazine among schools that do not have doctoral programs.

The program is part of the university's College of Business, which was ranked #12 in 2013 by U.S. News & World Report and has an overall endowment of $189.6 million. It is one of the largest business schools in the U.S., with a student population of 8,615 undergraduate and graduate students (Fall 2010), 1,016 faculty members and 339 staff members (as of Fall 2010). It also awards more degrees to Hispanics than any other university in the nation.

Forbes magazine ranked it as one of America's 20 best-value public colleges in 2011, citing low student debt among its graduates.

Conclusion

Executives and business owners are often asked to give a short talk or presentation to an important group. Picking the right topic is key.  Here are tips on how to choose a topic:

If you are asked to speak about your business, then pick something that your company is proud of, the company should be recognised for helping the community or for what they have achieved.  However, do not just tell a story of how great things were at one point in time; it is always best to show what you have achieved rather than tell.  Try and make the most of this time by inviting people from your area into your office or giving them a tour of where you work.