Tips for Creating a Business Plan

Over the years I have seen a number of business plans. The quality of those plans range from a sketch on a napkin to a professional presentation. I love the author’s tips on putting the plan together. Also, make sure you cater the business plan to the audience that you are presenting. Whether it’s an internal road map, financing presentation or looking for investors, the audience is important for a targeted plan.

If you are looking for financing from a traditional lending source you need to focus on the financial projections. The numbers must be realistic for your specific market. Large leaps in revenue that cannot be reasonably explained are going to raise concerns. Make sure you know the details of your product cost. For example, to make a widget, it cost X dollars, and the margin is Y.

Your experience level in the business is going to be a large factor in bank financing. If you are a CPA working for a large firm and you want to start your own practice, you will be looked at in a positive light. In contrast, if you are a CPA wanting to open up a pizza parlor and have never worked in a restaurant before, well…. You get the point. If you lack the experience but you have an experienced manager that you are going to hire, then you are on the right path.

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