A Business Plan is the secret to funding your startup; Here is how to write one

A business plan is a secret sauce to launching any business successfully. A well-written Business plan will get your startup funding when you know how to work with investors.

Because it will;

1. offer clarity

Having a business plan will give you a much better understanding of your business and the objectives you are trying to achieve.

2. Increase chances of success

Businesses with a business plan are 16% more likely to succeed. Furthermore, companies that have a business plan also enjoy higher growth rates than companies without a plan.

3. increase your likelihood of getting an Investment

Angel investors and venture capitalists base their decisions of whether to invest or not to invest on the likelihood of earning a positive return on their investment (ROI).

A business plan gives your startup a strategic focus on how to monetize your idea. This makes for a more attractive prospect in the eyes of investors.

Back in the olden days, we wrote business plans by hand, today all you need is a template, and there are thousands to choose from.

But ideas and firming your thoughts sometimes happen on the fly. Successful entrepreneurs know how to catch them on the back of a napkin. So if you’re a fan of the back-of-the-napkin approach to planning, it’s still easy to transfer this information on a template.

And you won’t have to suffer blank-page paralysis which is the quickest way of getting it done faster. Then you will get guidance on what to include in each section, as you are led on a step-by-step, section-by-section completion.

Here are some successful tips that will help you to write an attractive business plan that will get investors’ eyeballs on your startup;

1. Know your audience.Knowing who will read your plan helps you decide how much time you are willing to spend on it. For instance, writing a business plan for yourself just to get clarity on your ideas and your industry may not require much detail or polish as compared to a business plan you intend to present to potential investors.
2. Know your goals.Understanding the goals of your plan can help you set the right scope. If your goal is to use the plan as a roadmap for growth, you may invest more time in it than if your goal is to understand the competitive landscape of a new industry.
3. Take step by step.Writing a 10- to a 15-page document can feel daunting. Choose a couple of sections you feel most confident writing and start there. You can use bullet-point notes in each section before you start writing to organize your thoughts and streamline the writing process.

Whereas all business plans cover similar categories, styles, and functions they are different in the sense that they depend on how you intend to use them.

Here are four types of Business plans common on most templates. Choose one that best suits your startup:

1. Traditional business plan

This is a formal document meant for external purposes. Typically, this is the type of plan you’ll need when applying for funding or pitching to investors.

You can also use it when training or hiring employees, working with vendors, or in any other situation where the full details of your business must be understood by another individual.

2. Business model canvas

The business model canvas is a one-page template structured to demystify the business planning process. It substitutes a traditional, copy-heavy business plan. The single-page outline can help you and outside parties explore your business idea.

The structure ditches a linear format in favor of a cell-based template. It encourages you to build connections between every element of your business. It’s faster to write out and update and makes it easier for anyone to visualize your business operations.

3. One-page business plan

The true middle ground between the business model canvas and a traditional business plan is the one-page business plan. This is a simplified version of the traditional plan that focuses on the core aspects of your business.

Starting with a one-page plan gives you a minimal document to build from. Using bullet points and single sentences makes it much easier to elaborate or expand sections into a longer-form business plan.

4. Lean Plan

The Lean Plan is less of a specific document type and more of a methodology. Just like the one-page business plan, the template is simple and allows you to continuously plan, test, review, refine, and take action based on performance.

Additionally, it has many benefits including the potential to complete it in less time. It’s faster, keeps your plan concise, and ensures that your plan is always up-to-date.

You can also convert it easily into a full pan considering that it’s heavily tied to your financials.

The overall goal of Lean Planning isn’t to just produce documents that you use once and shelve. Instead, the Lean Planning process helps you build a healthier company that flourishes in times of growth and stabilizes through times of crisis.

Let’s face it nobody writes manual business plans anymore, and because the internet is filled with millions of templates provided by hundreds of websites, here is what to look out for in business plan software:

What to look for in a business plan software;

• Features:Different business plan software solutions offer different features. Take a hard look at the software to determine what features align with your business.
• Price:Although some software has free options (or free trials), in most cases, you’ll need to pay a subscription fee to access the platform’s premium offers. Look for an effective but budget-friendly and cost-effective business plan software.
• User experience:User experience can vary widely among different business plan software options. Some programs might be newer or recently updated. Others might be out of date hence a little harder to use. The right user experience for your needs is genuinely a matter of opinion and comfort. Therefore, you need to test a platform thoroughly to ensure that it can truly work for you before investing in a monthly or annual subscription.

If you’re looking for a place to start your search for the best business plan software, you can explore these five top options:

1. LivePlan

If you want template-rich, modern business plan software, then LivePlan may be the right pick for you. LivePlan excels with its updated and slick user interface, which offers intuitive, easy-to-use features and options.

Their step-by-step instruction will help you kick things off from the beginning, and you can make use of their online learning center to continue gaining business skills.

2. GoSmallBiz

GoSmallBiz is more than just a business plan software. It gives you access to business continuity planning software with features that cover creating a roadmap, working through business and legal forms, building a website, and much more.

In this way, GoSmallBiz is great for startups or newer businesses looking to access multiple business management tools through one platform.

3. Enloop

If you’re looking for free business plan software, Enloop is probably one of your closest options — they offer an all-inclusive seven-day free trial and no credit card is required.

Additionally, unlike most options, Enloop is strictly dedicated to creating business plans, including automated text writing, financial forecast comparisons, and a real-time performance score that tracks your progress.

Therefore, if you prefer a straightforward, fast, and simple way to write your business plan, Enloop is a great platform worth considering.

4. Bizplan

Bizplan gets top marks for its intuitive, simple, and modern user interface. On the platform, you can use drag-and-drop tools to build templates.

Moreover, for one subscription fee, you have access to all of the tools in the Startups.com network, including self-guided courses, how-to guides, masterclass videos, and more. And with a direct connection to Fundable, Bizplan is a top business plan software option for startups looking to acquire funding and find investors.

5. PlanGuru

Finally, if you are looking for business plan software with strong financial features including budgeting and forecasting, PlanGuru is a smart choice.

And unlike other software, PlanGuru is dedicated to business financial planning — providing the tools you need to create budgets, financial forecasts, reports, and more.

Therefore, if you need a software solution that can streamline the financial piece of your business planning processes, PlanGuru will certainly have the most to offer.

Final word,

It’s not enough to have a great startup idea. Planning is key to the success of any type of business, whether you’re a startup, non-profit, or corporation.

If you want to stand out from the pack, secure investment, and build a successful business that can earn real profits, scale-up growth, and capture customer loyalty, then you need a solid startup business plan.

This Article was first published Here: Everything You Need to Know About Writing a Business Plan for Your Startup