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Best Practices for Writing a Business Plan
A business plan is a blueprint of how to manage your business every day to achieve long-term goals. It is also important for attracting investors and customers from outside. It’s a must-have for anyone who wants to set out to start an enterprise, whether as a solo entrepreneur or within an enterprise division. It’s not surprising that so many studies point out the horrendous failure rates of businesses that don’t have a well thought out and executed plan.
Although every business plan will be different according to the needs of the business and its objectives, there are best practices that must be followed. The first step is to identify who the plan is intended for. This will allow you to determine the level and language of the document. It will also aid in determining which sections to include and what not to.
The next section must provide background information about the business. This can be done with an overview of the company’s operations that highlights its unique characteristics of the company and outlines the distinct features that distinguish it from competitors. This could include the legal structure of the business for instance, whether it is a sole proprietorship or LLC, partnership, or corporation and the number of employees.
The next part is an extensive analysis of the market. This includes the target market, the size of it, and the competitive landscape. It’s also important to highlight any unique advantages the company has such as industry knowledge or a management team with extensive experience.