In this article we are going to talk about the what are the characteristics of a good business plan. A BUSINESS PLAN IS A DETAILED DESCRIPTION OF THE GOALS, VISIONS AND FUNCTIONALITY OF A BUSINESS. It answers all the questions like what, where, who, why and how related to the company or business we are talking about. It presents the ideals and principles of the business. It is the plan that a business owner shows to its investors or customers and related people to increase their interest in the business and make them to invest in it.
But before we start making a business plan it is important for us to know what all needs to be kept in mind so that your business plan is a good one. There are various do’s and don’ts , how’s and what’s so without further adieu let’s get started.
What are the characteristics of a good business plan?
A few impactful characteristics of a good business plan are mentioned below:
Here, we are going to do a descriptive analysis of what all is necessary to include in your business plan to make it effective and efficient.
1. It should be brief and easy to understand
The business plan that you are making is going to cater to a large number of audience with different mindsets, temperament, level of understanding and knowledge. And so, it is very important to make your business plan easy to understand and brief so that even an amateur can understand what are you trying to say through the plan and also does not get bored or zoned out. You should only give the details necessary and talk about them in brief. It keeps people’s interest and participation active.
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2. It should be descriptive and clear in its purpose
A business plan should make the objectives and the purpose of the company very clear to the audience. It should talk about what the company has to offer, how can it be beneficial for investors and customers, and what all benefit it has. The reason for the establishment of the company and the goal it works towards everyday must be mentioned in the business plan clearly and boldly to help the customers understand the basics of the company they are going to work with.
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3. It should be supported by relevant data and documentation
Adding proofs along with your contextual data can improve the people’s faith in your company and it’s objectives. It is essential for you to show your company’s growth and progress charts and figure to make people realize the true potential of the company. Proper data and documentation helps people who are your targeted audience to know more about the company, it’s market presence and it’s yearly turnover. To establish the company’s image in the eyes of the audience it is also equally important to show them the data of the company’s CSR work that is – Corporate Social Responsibility. It shows how the company is not only centered towards it’s goal but also works for the welfare of the society.
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4. It should include company’s vision along with its requirements
One of the major reasons as to why a business plan is created and presented to the audience is to make the them aware of the company’s financial plan for the next four to five years. It talks about company’s vision on how to increase it’s sales and productivity and the new strategies it is going to follow and inculcate in the coming years. It also mentions the equipments , technologies, raw materials, financial or other resources that the company might be needing to fulfil their professional commitments.
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5. It should be realistic
One another measure of weather or not a business plan is good is it realism. A plan that is only in the paper and does not seem to be real enough to be actually put into works is something that the audience will not approve of. Even the greatest plan that cannot be implemented because of whatever genuine reasons is also considered to be a bad plan. A plan that has flaws and loopholes in it cannot work for the benefit of the company. The company should make such plan that does not have any flaws and even if there are possibilities of things going wrong the company should analyze it and have it’s counter attack measures ready.
6. It should talk about good and services of the company
The business plan must include in-depth information of the goods and services that the company has to offer. It should include reasons and qualities as to why the goods and services of your company is unique and better than what is available in the market. A plan should be convincing enough for it’s audience that they choose this company over others. It can also include facts and figures to make the Information more believable and easy to understand.
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7. It should have an error less format
Another important thing that needs to be kept in mind while making a good business plan presentation is to use formal format, styles and formal language only. The business plan is an overall presentation of your company and it’s image and so it is also important for it to be error free. For this you can use auto correct or spelling and grammar check again and again and do the proof reading to ensure that there is no mistake in the plan. You can even make your colleagues to go through the plan and ask them for their reviews and suggestions.
8. It should be motivating for the audience
Another important factor that is a must in your plan presentation is the customer strategy followed by the company. The customer strategy includes the strategies and action plans made by the company to create and maintain it’s customers. The plan should focus majorly on serving it’s customers. In this way, the Audience who will see the plan will get motivated to be associated with a company who’s top priority is their customers and meeting their demands.
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9. It should talk about it’s competition
Amongst the various aspects of a business plan , one important aspect is the company’s competitors. A good business plan should include data and documentation to show it’s competitors in the market and the relation between them. It should include genuine information to show their own share in the market. The plan should reflect upon the target market players of the company and how it is better than others. It should give reasons and data supporting it’s statement of why and how it is better than it’s competitors. The plan can also talk about how the company plans to make it’s strategies in order to get better and better at the market and serve it’s customers.
10. Review and revise the plan
At the end , the only thing to remember is the frequent revision and review of the business plan to check for any loopholes or changes in the market plan. This is done to correct any flaws and make changes in your active strategies to keep up with the ever growing and developing market. A good business plan is the one that is open to changes in plans and management along with correction with time. It has to be flexible in it’s terms so that it can adjust and be ahead of others in the market.
Using the above mentioned tips and tricks you can easily make an impactful business plan presentation and impress your clients. So, there you go!