5 Tips for Writing a Successful Business Plan for Your Hong Kong Business
Do you have a perfect business idea? Is your business plan ready as well? It is important to have a business plan prepared as soon as you begin to work on your business idea. A business plan is a document that turns your ideas into a detailed plan. It supports your vision by showing that you are serious about your business.
Starting to write a business plan may be a bit intimidating at first. Converting your ideas from thoughts to paper, giving details on how everything is going to be done, and starting your business is something that is crucial at the initial stages. This may seem like a big task, but it is not as time-consuming and difficult as it looks.
Here are a few things that will help make the process faster and easier for your business plan.
1. Write for the audience
When you are writing a business plan, think of the audience that you are writing it for. The most common people you will be writing the business plan is for lenders, investors and employers. Cater the needs of your audience as much as you can when writing the plan.
At the beginning of the page in the first paragraph, to get the audience interested, state what you do. Elaborate on how your business plan will help the company achieve its long-term and short-term goals.
Then try to get them more into the plan by stating the purpose of the plan and how secure is it for funding. This helps to build more interest. The writer of the business plan should mold the details in such a way that it should give out all the information in a specific and well thought-out manner for each type of audience.
For instance, potential investors will seek details with clear explanations of the proposed return on investment along with timeframes for receiving back their money.
2. Thoroughly research the market and understand the ongoing competition
Emphasize the importance of knowledge the investor places on the market. Also the need for thorough research on the market conducted by entrepreneurs. The market research should be conducted by entrepreneurs to assure that the plans include references to the market size, how they will gain access to it, and the predicted growth path to be followed.
They should also include plans for access online. Calculate the internet penetration rates and predictions about the possibilities of growth or decline. In the end, you will have to conclude with the review of a competitive environment. Next, comes an essential component that will help you conclude at the end. Every entrepreneur should understand the business environment and the competition in it.
While understanding the competition, you need to focus on the basis of the competition in the industry and its nature. You need to figure out whether it is a competitive market or one that lacks competition. Get answers to important questions, such as how the businesses in the market is competing, and if there is a price leader.
In the end, after understanding the basis of the competition, in the conclusion include how you plan to compete effectively in the market with the existing competitors.
3. Focus on attention to detail and the opportunity
In running the business, the writer of the business plan has a vital role to play. They should write the plan in such detail that the plan reflects professionalism. There should be accurate content, credible projections, and no spelling mistakes. The business plan should be brief and include all the essential details to ensure that the reader has adequate information for informed decisions.
If you are seeking investors for your business, then it is essential to give a clear, detailed investment opportunity. Give sufficient details about your business product or service, such as what is the unique selling proposition (USP) of your business? Why will people spend their money to buy your product?
Also, state the advantages for investors, such as why should they put their money in your business instead of investing in other businesses, or leaving that money in their bank?
The writer should write in a way that potential investors are convinced by the details to invest. They should be able to deliver whatever the future audience wants to see. They should also consider making a backup power point presentation for the business plan, if required by some audiences.
4. Do all the sums and ensure that all the key areas are covered
All the sales predictions should be both realistic and conservative. They should be written down in detail as well. Review all the sums correctly, as these numbers are for critical observation. The level of sales is a vital factor that determines the success or the failure of the business.
If you can not do the math, then hire someone to assist you in preparing a break-even chart and a simple cash flow. All this information will help the reader understand the amount of sales you need to cover your costs.
This will also give them a brief picture on how much finance you require to successfully start up the business, and if the costs and expenses in the beginning are too high. If the sales are on credit, then it might take you up to 4 -5 weeks to receive back cash.
After all this is completed, then conduct research on what a business plan should contain. Sections such as Market, Product/Service, Competition, Marketing, Financials, Operating, and Management Team should be included about the company. Use many simple colored charts and sheets with plain texts to make it catchy, but not too many. The Business Plan should take on the interests of those reading it.
5. Give an executive summary and a review process
One of the most critical parts of the business plan is the summary. The summary should act as a key qualifier for investors. This is the place where if they like it, they will read further. This should be done at the very end of the business plan and should have a “wow” factor in it.
To make it more interesting, the writer should give a brief on the advantages and the key benefits of the service. Once you are done completing this, you should have it independently reviewed. The local Business Link or enterprise in your area should provide you with the assistance.
If not, you should be able to give it to people who can offer constructive criticism on all the perspectives of the plan. This review should help you to correct any mistakes and issues that you can solve.
A business plan should be seen as a living document that represents the company. It should be followed for all the dates, specific responsibilities and deadlines. The document should continuously be updated to keep up with the changes.
Businesses depend on the people in charge of taking action and being held accountable. A well planned business plan will assist you in ensuring that the business is focused on achieving its goals. So, make sure you prepare a magnificent business plan! And if you are still at the stage of registering your business, Startupr can help you. Contact us today!