How to Make a Business Plan Successful

There is a general idea about how to make a business plan, which is why the appearance of business plans remain the same for all times. However, whether a business plan is acceptable or not depends on the inclusion or not of certain ingredients necessary for its success.

Since one of the purposes of your business plan is fund raising and because your business plan will be reviewed by those you seek fund from, it is better to stay with a conventional format and the normal decision making components of a good business plan, if not your reviewers may see no reason to go ahead with the review.

Write Your Executive Summary Section Properly

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Business Plan for Small Business – Testing Your Concept

A lot of entrepreneurs come up with what they think is a great idea and before testing their idea, they just start spending money. This is definitely the wrong approach. Slow and steady wins the day. If you have an idea and have fully developed it; then it is time to test it. “How do you do that?” you ask. It is quite simple. You go and find people who are or have been in a similar business and you ask for their opinion on your small business idea. And then listen intently to what they have to say.

A lot of people make the mistake of NOT doing this and they are the ones that go on to make those $10,000 mistakes. If you take the time to test your idea before putting your idea into motion and spending money, you will be able to catch yourself from making a big and costly mistake and also allow you to refine your concept before putting it into place. Find those people who will give you an objective opinion. They will have already made the mistakes you’ll make if you don’t listen to them.

So ask: “I am thinking of opening a ‘Something’ shop in ‘Somewhere ville’, what do you think?” I am sure they will have some questions and you better be prepared to answer them:

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Business Plans – The Assessment of Risk

Part of any good business plan includes a section on likely risks to the business. Since every business has these risks, recognizing and planning for them must be done. Here are three steps to take, so that your business plan can outlay potential risks, and reduce them:

  1. Discuss the most likely risks to your business
  2. These can include not achieving your desired sales results, adverse responses from competitors, or other problems which are specific to your industry. You might also include the estimated probability that each risk will occur, so you can spend more time preparing for those events which are more likely to occur. You should also detail how bad the effects will be, should each risk come to pass.

  3. Develop a response plan for each risk
  4. A good response plan will not only allow you to recognize that a risk is imminent, but also gives you some options for handling it as it unfolds. Clearly, the more likely and more severe the potential consequences, the more time should be spent creating options to deal with each potential problem. Your plan should also take into account when fundamental business assumptions are not coming true, so “Go/No-Go” points in the progression of the business can be identified, and the business effort can be abandoned, or drastically revised should it need to be. These can save you from wasting time, money, and effort on a business opportunity which can never succeed.

  5. Recognize that not all risks will be uncovered
  6. A great plan is a living document. As you get further along in your business efforts, you will learn more, gain a better understanding of the opportunities and risks, and make other changes. The business plan should be updated as new risks are discovered, and the potential for old risks disappears. Even so, some unanticipated risks will be encountered. In these cases, it will come down to how well you can overcome the unidentified problems (as well as the correctly identified ones).

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