To improve your business writing skills, you should get yourself acquainted with the basic principles and rules used by experts when writing real business plans. It would help if you remembered that there are three types of business plans:
- A business plan you write as a part of your Business class. It is a short version of the real business plan;
- A business plan you write for your own use as an entrepreneur. In this plan, you should pay extra attention to the sections which describe risks, disadvantages of the particular market, etc. — everything that can cause loss of money;
- A business plan you present to a potential investor. It would help if you paid attention to the virtues of the market and product or service — to everything that shows the benefits of your business idea.
#1. Learn More about Market Analysis
Here you need to tell about the market in which your project will be launched. In this case, let take a car wash for a new housing estate as an example. In this area, residential complexes belong to the segment above the “economy,” which means that most residents will have cars. The array is new, and there are still few car washes.
An analysis of the work of competitors showed the presence of queues. So, we can conclude a dissatisfied proposal. After studying the area, it is necessary to determine the placement of the plates, which will point to a new car wash.
First customers should be offered a discount — to increase loyalty and the recognition of your brand in the local area. The cost of services should be set within the market range of prices.
Define your product and how to sell it clearly. Tell the audience (a professor or an investor) what makes you better than your competitors. Write about your marketing options. Having read this information, the investor must be sure of the success of the project.
#2. Ace Making Calculations
Investors are interested in net profit before tax, and it is useful for the entrepreneur to have such information. In essence, the calculation of costs is the beginning of this section, because, knowing the costs and revenues, you can also determine the potential profit.
This section consists of two parts. In the revenue part, knowing the value of one car wash and the projected flow of customers, you can find out the daily cash turnover and understand it on a monthly basis, because in winter, cars are washed more often. Since your car wash will work in the suburb area, most cars will come to the car washes on weekends and evenings. Next is the expenditure part. Here it is necessary to note the constant expenses (salary, rent, materials, utilities) and one-time expenses (purchase of equipment). With all these figures, you will understand the payback time of investments.
#3. Get to Know How to Assess Possible Risks
The business plan should indicate the likely risks and ways to minimize potential losses. So in the eyes of an investor, you will not look frivolous.
For example, a project could be threatened by the massive opening of car washes in the area or an unexpected increase in rent. If you do not agree with the rise in the cost of the lease, then the contract must provide options for refusal, compensation, relocation and time for this, in order to minimize losses.
#4. Don’t Forget to Summarize the Business Plan
Although this is the last step in writing a business plan, you need to put it at the beginning, because the investor first gets acquainted with it. There you need to briefly describe the business idea: a car wash in a prestigious area with a high demand for this service.
Indicate in the summary the sum of investments, the forecasted yield, the payback period and the return of money, the possible profitability, the start-up time of the business.
This is the shortest, but the most essential part of the business plan. Its goal is to draw the investor’s attention to the project and emphasize its virtues. It does not require much text. Everything should be logically stated and comprehensive. If you are looking for a professional service to create a business plan for you, we recommend you SmartWritingService where you can buy a custom business plan written by experts. Good luck!