Part Two: How To Prepare To Write The Best Business Plan (5 Major Points)

Note: This is the second article in a 3-part series about Writing the Best Business Plan. There are literally millions of articles, courses, outlines, and information available, both free and priced. In fact, the information available is so overwhelming, that it is very difficult to know where to begin and what to trust! These articles are designed to give practical, useful, and valuable advice about how to get it done.

The 5 Major Points About “How” To Prepare To Write The Best Business Plan

In Part One, we looked at purposes and types of formal business plans; the purpose dictates the type of document to construct. All executives, bankers, investors, and business leaders agree that every business should have a formal business plan that is tailored to the desired purpose and result.

Many new businesses – and many entrepreneurs – do not understand how to properly prepare to write an effective plan. The rule of thumb is this: “Proper planning prevents poor performance!”

There are 5 Major points to consider in preparing to write a formal business plan:

1. Purpose. Who is the Business Plan being written for, what is the proper scope, and what is the desired result? These points were covered in Part One of this article series:

a. Is it to attract an investor? Plan should be a “brief sales piece” geared directly towards the questions an investor will ask.

b. Is it for a bank loan, SBA-backed loan, or other commercial loan? The plan should then cover the information a banker would want.

c. Is it just for the business owner and to serve as a road map?

d. Is it for multiple purposes, or to be used for various ends? Consider a “parent” plan or targeted plan(s).

2. Available Resources. The overall quality of a business plan will be largely the result of identifying excellent resources (provided the writer is competent). What is great is that a lot of the very best resources are completely free!

a. One of the very best resources available for the Best Business Plan is the SBA (The Small Business Administration). Their website is excellent, easy to navigate, and full of the very best, up-to-date tools and information. And this is free!

b. Another excellent free resource is “SCORE” (Service Corps of Retired Executives). Like the SBA, the SCORE website is awesome. SCORE helps 20,000 businesses get started each year and has helped over 8.5 million business owners.

c. Here’s a list of other great resources: Economic Development Council, Small Business Council (local), Chamber of Commerce (local), SBDC (Small Business Development Centers), the local library, Entrepreneur Magazine online, and so many more!

3. The writer. Be sure that whoever writes – or is hired to write – your business plan is the right person for the job. The same way you would seek an experienced carpenter of construction contractor, you should seek a writer; ask questions, view samples, get references, etc.

a. If the writer does not ask you about the audience and intent of your plan right at the start, throw up a red flag! This is not a good sign.

b. If the writer is a large corporation, chances are very good you will not get enough personalized service; often you are just another account and you do not want a “cookie-cutter” business plan at all. Be very careful about hiring a big company.

c. If the writer does not have personal business experience, or specializes in a certain area, or does not have a comprehensive knowledge of your business variables, do not hire him or her.

4. The Executive Summary. The Executive Summary is the first section of a great business plan, and yet very often its vital importance and effectiveness is overlooked.

a. I recommend that this section is written last and then inserted at the beginning.

b. As the document is written, notes, information, and data can then be set aside (copied) that are perfect for inclusion in the Executive Summary.

c. The Executive Summary is like a mini business plan and should directly serve the purpose, plan type, and result desired. It should be as brief as possible, and yet as inclusive and persuasive as possible.

5. Panel of Consultants. It is my recommendation that every business plan includes a “Panel of Consultants” in order to provide quality assurance, consistency, and above all, credibility. This can be someone who is/was a “resource” (see #2 above), other people from within a particular industry, or someone that provides vital supportive information.

In conclusion, in this article we have taken a brief look preparing to write a formal business plan. Some people might add that assembling the data for the “Financials” is also important in preparation. Although this is entirely true, I have chosen to include this in Part Three.

My suggestion is to carefully research when hiring someone for the job. As with anything positive, it is best to consider your desired result before taking action.

In Part 3, I will discuss “Writing The Best Business Plan”. The rule once again is: “Proper planning prevents poor performance.”

By: Kurt Turrell

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Kurt Turrell (www.KurtTurrell.com) is a business consultant, lifestyle coach, entrepreneur, and author. With over 20 years in hotels, management, education, and life skills development, Kurt is an authority on many areas of business, management, sales and marketing, and business streamlining, as well as helping individuals to achieve abundance and success in all areas of life/living. Go to www.KurtTurrell.com to get “Lifetime Success in 6 Simple Steps” completely free.