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16.01.2020 6 FEATURE WHEN you're first getting serious about starting a business, the first thing you should do is write a business plan. Business plans serve several key func- tions that make them indispensable for successfully launching a new company. Not only do they serve as a roadmap to guide you in the early days of your business, but they also serve as an op- portunity to research market condi- tions, competitors and potential pit- falls you might not be aware of. Business plans are both an analytical and planning tool, two components that are essential for getting a new business off the ground. is guide offers you key insights into how to create a high-quality business plan that will serve your business now and in the future. What is a business plan? As with most ideas, the best way to execute them is to have a plan. A great idea for a startup isn't enough; it must be bolstered by a plan of action. A business plan is a written outline that you present to others, such as in- vestors, whom you want to recruit into your venture. It's your pitch to these people, shar- ing with them what your startup idea is and how you expect to make money from it. Why do I need a business plan? Starting a new business comes with headaches. Being prepared for those headaches – and trying to get ahead of them – can greatly decrease the im- pact they could have on your business. One important step in preparing for the challenges your startup may face is writing a solid business plan. Writing a business plan helps you un- derstand more clearly what you need to do to reach your goals. e finished business plan also serves as a reminder to you of these goals. It's a valuable tool that you can refer back to, helping you stay focused and on track. How do I present my business plan? Your business plan can be written as a document or designed as a slideshow, such as a PowerPoint presentation. It may be beneficial to create both ver- sions. For example, the PowerPoint can be used to pull people in, and the docu- ment version that contains more detail can be given to them as a follow-up. What should a basic business plan include? For a startup idea, according to Tim Berry, an angel investor and founder of Palo Alto Software, who wrote on Quora.com: "...the bones of it ought to include just a few pages to list key strategy points, key tactics, impor- tant milestones, metrics, tasks, and essential projections, including sales, spending and cash flow." How detailed should my business plan be? is depends on the nature of your idea and how complicated or simple it is. If you're writing a plan for a startup, it can be 10 pages or less, according to Berry. To appeal to investors, another ver- sion of this business plan can be put together later that has more details, such as charts, specifically targeted to potential investors. How can I start my business plan with no money? You can use Google Docs and Google Slides (both applications are free). e apps come with templates that you can use to create a business plan quickly. Microsoft has online versions of Word and PowerPoint that are free too, and, both apps offer several busi- ness plan templates you can choose from. What part of my business plan should I create first? e technicalities and standard infor- mation that go into a business plan are easy enough to figure out. But there are other, more abstract things, to con- sider before you put pen to paper. Make sure you take the following five steps before drafting your business plan. 1. Determine your purpose. Having a plan to make a profit is im- portant, but it's not the only thing that matters when you start a business. "Business plans … encourage en- trepreneurs to focus on what they are going to do," said Alan Williams, co-author of e 31 Practices (LID Publishing Inc., 2014). "is overlooks two more important questions: 'why' – why it exists and why employees would want to get out of bed in the morning, and 'how' – the values of the business, what it stands for, and how people representing the business will behave." Williams advised entrepreneurs to take time to identify and articulate their business's core values and pur- pose – both will serve as your organ- ization's compass for decision-making at all levels. Williams' co-author, Ali- son Whybrow, said that this "compass" can be discovered by having an honest, open conversation with your team. "One thing that a team might want to do is engage in a formal assessment process – looking at habits, beliefs, values, and capability – so that they are working from a clear starting point and have a framework for discussion about working styles, strengths, and individual and collective blind spots," Whybrow said. 2. Build your vision. e key to business success is hav- ing a clear vision of what you want to accomplish as a company, experts say. But before you write a business plan, you should come up with three to five key strategies that will enable you to achieve that vision, advised Evan Sing- er, CEO of SmartBiz, a provider of SBA loans. "Sometimes, less is more," Singer said. "It's far better to do three things very well versus 10 things not so well." An additional, imperative aspect of your business plan is the mission state- ment, which is the "why" you're doing what you do. "e first sentence of the mission statement should be why you're in business. After you fully understand the why, then you need to define 'what' you are going to do and 'how' you're going to do it. e third and final part of the mission statement should be the 'who' you want as customers and how you are going to treat them," said Tina Bacon-DeFrece, president of Big Frog Franchise. 5 things to do when writing