Write a Business Plan That Really Reflects Your Business

Writing a Business Plan from scratch can be daunting. Like writing a great novel… or pouring out your life story (which for many founders’ is the case - as their company is their life!). It takes a lot of thought and effort to get it all down on paper.

Then there are the strategic frameworks well-meaning investors and analysts expect. Hello Porter’s Five Forces… and don’t forget your SWAT analysis!? And so many TLAs your head will be swimming: TAM, SAM, SOM, GTM, DVF, PMF, PLG, B2B, CAC, LTV, GPM, CAG, ETC!?

Despite the daunting mashup of documents, spreadsheets and TLAs, do not (I repeat - DO NOT) be tempted to outsource the task of writing your business plan. The process of reflecting on what your business (or dream) is, analysing the market and your customers, describing what you will offer them, and distilling down the mechanics and financials on how you will do it - is hugely illuminating.?

If you hire a consultant to do all that - you will be outsourcing your own critical thinking process and paying for the privilege. Even worse, there is the risk that the plan does not match the business you want to build.? I have worked with advisors and strategy consultants that deliver great slideware and impressive spreadsheets, but if they do not accurately reflect the business - now or into the future - it is a real waste of time and money.???

But waste not! Writing your business plan is really not that hard! Like any story, start out simply.? At the highest level, a business plan should explain what you have, why customers want it, and how your engagement with them creates mutual value.? In exchange for your customer’s hard-earned dollars, your product or service should improve their business and/or life.??

You shouldn’t need to write a novel for the first pass at your business plan. You could start with a business plan that’s short, to the point, and easy to update. Even if you will eventually write a longer business plan, a one-pager is a great place to start.? That may be all you ever need. But if you’re going for funding, your business plan will need to be a good deal longer and more comprehensive.

Key sections your business plan should cover includes the PROBLEM you solve, your SOLUTION, the MARKET opportunity in front of you, and your COMMERCIAL model - how you make money! Also be sure to address SALES & MARKETING strategy including how you will inform and engage customers, COMPETITION and why will you win, and the TEAM to deliver it. Finally, a FINANCIAL MODEL should tie it all together, along with a FUNDING strategy that shows how you will fuel that rocket ship! Of course, you could aim for a bootstrapped growth model that needs no external capital. But if you are wanting to raise external capital in order to run faster, your investors would also like to see an EXIT STRATEGY.

Remember that your business plan should be a useful asset for you - a framework for you to think through the business and how you will grow it. If you put the time in to develop a great busines plan, it will act as a compass to guide you and your team throughout the crazy day-to-day of building your dream.

It should also serve as a magnet to attract great teammates, partners and potential investors who want to join you for the journey.? Your business plan is the foundation on which you and your team will build a successful, sustainable and scalable company that fulfills your vision!