Preparing a Business Plan

To prepare a complete business plan, an entrepreneur needs to follow several orderly steps. A good plan is built on accurate information, not merely on assumptions.

Steps in preparation

1. Identify and evaluate the business idea to be pursued.
2. Carry out market research to understand customers and competitors.
3. Set the vision, mission and objectives of the business.
4. Prepare each section — the marketing, operations and financial plans.
5. Write the executive summary after all the other sections are complete.

After it is complete

Once complete, the business plan can be used to apply for a bank loan or to present the idea to investors. The entrepreneur should also review the plan from time to time because market conditions change.

Points to pay attention to

While preparing the plan, the entrepreneur must make sure every figure is backed by evidence. For example, cost estimates should be based on real quotations from suppliers, while sales targets should be based on the size of the market that was studied. The language used must be short and clear, and the entrepreneur should avoid copying someone else's plan because every business faces different conditions.

In addition, the entrepreneur can seek advice from agencies such as SME Corp or from financial institutions before finalising the plan. An outside view helps to spot weaknesses that might have been missed. Reviewing the document repeatedly before submitting it also helps avoid mistakes that would weaken the reader's confidence.