Top-Biz Guru’s Top Ten Tips for Writing a Business Plan

1. Put Yourself In Their Shoes. Meaning the people who will read your plan - who are they and what do they want to hear? They'll either be investors or a bank or loan company who are lending you the money. Either way they'll want to know how your business is going to generate cash to pay them back and in the case of investors, give them a bit extra as a reward for their risk.

2. Describe Your Business Accurately. For example a car hire firm may be anything from a single minicab parked in your drive to a large fleet hire company leasing to corporate clients plus a range of self-drive vehicles. Be specific about what you're setting up. So long as your plans are underpinned by a coherent strategy you shouldn't be afraid of thinking big.

3. Identify Your Customers. It's no good talking about "customers" in the abstract. Find out who they are likely to be, why they will like/need your product or service and how you are going to sell it to them. Is your business limited to a geographical area? If so, define it and get hold of some statistics about the local population. Show the demographic breakdown and those sections of the community who will be your prime customers.

4. Remember the Big M. That's marketing of course. Bank managers are approached by countless numbers of dreamers who think all they have to do is come up with an idea, throw some money at it and make a fortune. It can work like that, but only if you're very lucky. Backers will want to be convinced you're relying on more than luck, so show them exactly how you're going to get people buying from you. Have a marketing strategy and set it out on paper.

5. Show You Understand the Competition. Who are they and where are they? If there are already three hairdressers in the immediate locale what are they offering and how much do they charge? Will simply undercutting them (sorry about the pun!) work or do you need to offer something they don't - maybe pedicures, additional beauty treatments or some other USP....

6. Describe Your Unique Selling Point. You may not think you have one, especially if your business is traditional. But think again. A sandwich bar that opened amidst several others in a town centre was finding it tough to tempt in the customers. Then one of the staff came up with naming the sandwiches after the classic film stars - Bogart, Dietrich, Fonda, Chaplin etc. They also put old movie posters on the walls. Gimmicky yes, but what had been just another café became a talking point in the town and drew in the punters.

7. Logistics. Provide a detailed, step-by-step breakdown of exactly how your business will operate. It's no good leaving these things till later, you have to show you've thought about it fully in advance. How many staff, what they'll do, how the equipment works, where and when supplies come from, how customers collect and pay for goods. These things must all be itemised.

8. The Sums Must Add Up. Never be vague about amounts of money. Bank managers and accountants' toes curl up at words like "about", "probably" or "roundabout" Your financial statement must show exactly how your start-up finance will be spent - capital equipment, stock, rents, running costs etc. Your income from the business will of course be based on estimates but nevertheless give specific figures for these estimates.

9. The Breakeven Point. For your backers this is probably the most important element of your business plan. And because you know they're keen to see you start to turn a profit, it's tempting to be over-optimistic. Serious investors are realistic people however and they'll want to see this quality in you. The important thing is not quick profits but sure and steadily growing profits.

10. Look to the Future. Obviously this is what a business plan is all about. But include some "blue-sky" thinking for the longer term. Talk about expansion possibilities, diversification and opportunities for exponential growth. For investors in particular, this is the kind of Wow Factor to bring them on board with you.

By: Ron G Holland

Ron G Holland is author of eighteen business books, manuals and audio programs; is Britain's leading motivational speaker and Top Biz Guru.