Tips to Writing a Business Plan
Here at OnPoint Advisory, we quite often talk to clients about their business plans, and if they have one.
It is rare that a client actually has their plan down on paper.
Here are some tips to help you write a business plan that lets you stand apart from the crowd.
Identify Your Niche
You need to identify what sets you apart from the rest of the businesses in your industry. Focus on a specific market and indicate any secondary markets that you may want to tap into in the future.
Don’t be concerned about the size of the market but by your ability to lure them to you. A large market means a lot more businesses are already in it, and will give you a large amount of competition to deal with.
Identify what sets you apart and why you think you have a chance of getting a piece of the market.
Understand Your Business Before You Start The Budget
You cannot set a realistic budget without knowing your industry, the market, and competitors.
Make sure you have a good understanding of them, while you start preparing your financial projections.
Many times I’ve have had people tell me that they have a budget of only a few thousand dollars and they want to start a business.
They believe that they will find some way to just fit everything in. WRONG! There are barrier costs for many industries. Your job is to understand what they are.
Customers Are The Guidance You Need
You are NOT your client.
Don’t create a product or service just because you think it’s a great idea.
And don’t get offended when people, outside of your family and friends, tell you it’s a bad idea. You need customers! Make sure that you target a market that really wants what you are going to be offering.
There Is Always Room For Improvement
Though you may want to boast about how you have the perfect fool-proof plan, be careful to leave room for improvement.
A perfect plan rarely exists.
Be honest about your weaknesses, and be insightful about ways to improve them. Especially, if you are a tech oriented business.
Get A Second Pair of Eyes
I can not reiterate this enough.
Have someone proofread read it! And then get someone to read it again.
There’s nothing worse than asking someone for money when you have a whole bunch of spelling and grammatical errors in your plan.
Get someone you trust to read through your plan. Have them point out any weaknesses or areas that need more explanation.
- Identify Your Niche Market
- Know Your Business Before You Start A Budget
- Target What Customers Want
- Leave Room For Improvement
- Have Someone Else Read Your Plan
OnPoint Advisory is a Gold Coast based accounting firm servicing areas including Robina, Broadbeach, Burleigh Heads and Miami.
Contact us today to discuss the benefits of having a formal business plan.