Learning how to write a business plan takes time. You may have to prepare several drafts before you are ready to present your business plan to investors. This list of do's and don'ts can help you know if you are headed in the right direction.
Do write a mission statement. The mission statement describes what you do and how you stand out. This is the statement that anyone who reads your plan is most likely to remember, so spend plenty of time on it.
Do follow a business plan format. While business plans vary depending on the nature of your business, you need to cover the following key areas: executive summary and mission statement, your product or service, description of how your business will work, market analysis and plan, future business strategy, business organization and players, request for funding, financial outlook and appendix with any extra information.
Do know your market and your customers. Writing a business plan calls for in-depth knowledge not just of your product or service but also of who will be buying that product or service.
Don't go after a large market. You cannot sell a product or service to everyone. If your target market is too large, investors will be suspicious that you haven't done the proper research.
Don't ignore the competition. First, no matter what you are selling, you have competition, even if it is just the customer deciding to perform the service herself instead of hiring your service. Researching the competition might also help uncover a new niche market that would love your product or service.
Do shape your plan to suit the audience. When you request funding, you need to think about the audience and how much they will already know about the business. You don't want a potential investor to prove they know more than you, but you also don't want to sail over their heads with specialized knowledge.
Don't overpromise. When you prepare a business statement, you are expected to include financials as well. If you promise an investor that he will be making money within the year and your financials don't back that up, then you won't be getting the investment.
Don't forget the future. You may be getting started, but investors will take your more seriously if you have a vision that goes beyond tomorrow. Your financials should look ahead for at least three years.
Don't skip the details. Details matter, right down to the typos. You want a glossy, professional presentation.
 | Writing small business plans helps you define your business strategy, provides you with a point of reference to measure your success and presents lenders or other investors with the information they need to make a loan decision. |
 | What is a business plan? A business plan details your company's mission and shows where you've been and where you are going. It is often used in presentations to potential investors, but you will be relying on it for a long time. |
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