How to Keep Your Business Plan Simple

One mistake that many owners starting their own business tend to do is to make their business plan too complex. A business plan is that is done right will be one that outlines what you want to happen. Make sure there is flexibility for when it does not happen. Here are some simple business plan guidelines that are straightforward and effective.

1. Keep Your Business Plan Scaled Down
Be realistic in your approach to your business plan. Keep it simple unless your plan your company to be the next Facebook or Google. There is probably no reason to have a hundred page plan to start your business. Most startup companies need only a basic strategic outline that may cover 10 or 15 pages at most. Your business plan should just be big enough for you to manage your business. Long complicated business plans will not help you statically.

2. Your Business Plan Should Cover the Necessary Requirements
A good business plan will allow you to expand it as your business grows. However, as you start out just make sure that the necessary requirements are covered. Check your capitalization needs and resources. Make sure that your market is clearly defined and you have a marketing analysis. Make a list of assumptions and goals within the business plan. Basic outlines should include financials, sales, forecasts, and expenses.

3. Make Sure Your Business Plan Has a "What If..?"
Wouldn't it be great if your business plan worked and you had no problems in your startup? The reality is that 99 percent of all business startups need to have a contingency plan in place. Something in you business plan that states what you business decisions will be made if your company does not hit quotas, or sales are not achieved by a certain time. Maybe change marketing tactics or refocus on different products or services.

4. Ask for Help When Writing Your Business Plan
Writing a business plan is something that almost every business has done before you. There are tons of resources to help you write one. Check online with sites like the Small Business Administration (sba.gov) for guidelines and simple templates. When you do have your business plan written, have friends and other business owners look it over before you approach any potential investors. Listen to those business owners who have blazed this trail before you and take their advice seriously. You may only have one chance at getting an investor interested and a good business plan just might seal the deal.

5. Review Your Business Plan Frequently.
Your business plan needs to be a living document to your business and not a stagnant one. Review your business plan every few months to make sure that your business is still on track. Take that review time to consider what is working and what is not in the business plan and then update the document if needed. A good business plan document will verify with the new business owner whether their business is still viable.