3 Tips for Writing a High-Quality Business Plan
If you are an entrepreneur interested in starting a business, your mind is probably racing with ideas and possibilities. One of the most important things you can do to start your business off on the right foot is to create a detailed business plan. As the old saying goes, “Failing to plan is planning to fail.” This statement is especially true in the business world. Approximately 80 percent of new businesses fail within their first year and a half. In order to give yourself the best chances possible of success, ensure that your business plan is realistic, thorough, and well-researched.
Tip #1: Spend More Time Researching Than You Think Is Necessary
Starting a business is an exhilarating undertaking. Understandably, you may be eager to get started on the tangible aspects of your new company. However, neglecting to do exhaustive research before jumping into a business can be disastrous. Take the time to learn about your industry, competitors, market trends, and customer purchasing habits. A professional business plan should include data and statistics that back up any assumptions or projections made in the plan. Potential investors may check this data against industry figures or third party studies so it is essential that your information is accurate.
Tip #2: Be Sure to Understand Your Risks
Sometimes, in an effort to entice investors or lenders, an entrepreneur will insist that that there is no risk involved in his or her business. This statement can make a business owner appear uninformed and naïve. There are always risks involved in any new business venture. Understanding these risks and having a plan to mitigate such hazards is an essential part of a business plan. Be prepared to answer questions about the risks from lenders or potential investors. It is similarly foolish to assume that a new business will have no competition. Even if the competition is indirect, underestimating the impact of your competition can lead to serious problems.
Tip #3: Get Feedback From Both Professionals and Nonprofessionals
Ask as many people to read your business plan as possible. Feedback from friends, colleagues, potential investors, and lenders can be valuable sources of information. The questions or criticisms you receive can help you to fine-tune your business plan and find areas that require more in-depth research or explanation. Furthermore, input from professionals including financial experts, marketing professionals, and a business law attorney can provide the unbiased, informed feedback you need to give your business the best chances of success.
Get Legal Guidance
Starting a business is full of legal pitfalls. For dependable legal guidance you can trust, contact our team at the Gierach Law Firm. Schedule a confidential consultation with one of our skilled DuPage County business lawyers by calling us at 630-756-1160 today.