In the first part of this article series we addressed the first five steps on how to write a business plan.  If you have not checked out Part 1 of This Series, be sure to do so before reading.

If you are working on or have completed these first five steps then congratulations!  You are half way home to writing a business plan that will impress lenders and investors.  So let’s get started with Steps 6 to 10!

6.    It’s research time.
Now is the time to think like a lawyer and build a case for your business plan.  Your goal is to compile information and research to support the claims and assertions you make in your plan.  Drop by the library and ask the librarian if they know of any sources of information that can help your cause.  Schedule a meeting with a local SBA representative or a Small Business Development Center counselor.  Call your local and national industry associations and track down annual reports for companies in your industry.  Request product and service information from your competitors.  In short, scour the internet and talk to anyone and everyone that might be able to help you collect information for your business plan.

7.    Start thinking about the numbers.
Step seven in how to write a business plan is personally my favorite – the financial projections! It is advisable to begin developing your pro-forma financial statements at this point.  If you start any sooner, one of two things is likely to occur: 1) Your numbers will be based on pure fantasy and you’ll have to change them anyway, or 2) You’ll attempt to write your plan, do the research, revise your plan and complete your financial statements all at once – and none of it will get done.

If you prepare your financial statements at this stage, your numbers have a much better chance of matching and supporting the text in the body of your business plan.  For example, if you mention a specific marketing medium in your marketing section, you’ll need to include the corresponding costs somewhere in your financials.

8.    Write a final draft and finish the numbers.
Sometimes finishing is the hardest part of completing large projects like a business plan.  But if you follow the steps leading up to this one, success is just around the corner. Avoid the mistake many business planners make at this stage – it is important to check, double-check and triple-check your writing for grammatical and spelling errors.  Think of it this way – bankers and investors will assume that you will manage your business and protect their money with the same level of care and attention that you demonstrate in your business plan.  Go all out and write a business plan that sends a powerful message about the quality of your work.

9.    Set a deadline.
To ensure that you complete your plan, set a deadline for yourself that you can’t ignore.  We suggest calling a few people you respect to ask if they would be willing to read your plan and offer suggestions.  Make this arrangement with someone whom you are not particularly close with, possibly a professional acquaintance, so it’s more difficult and uncomfortable to call and delay.  Ask for feedback and make it clear that honesty is what you are after.  If you don’t explain this up-front, you may hear “looks good to me” – essentially a waste of time for both of you.  If you feel tears coming on as they serve up their advice – things are gong well.  Take detailed notes and refrain from crying until after the phone is back on the receiver.

10.      Polish your plan to perfection.
The comments you receive from your readers will help you to beef-up the sections of your plan that need attention.  Track down any additional information you may need, incorporate the ideas that your readers offered and clarify sections or points that were not clearly conveyed. Put together an appendix if necessary, create a clean cover page and table of contents and include a non-disclosure form.  Lastly, prepare a one-page executive summary that encapsulates the highlights of your entire business plan and place it up front.  Walk into your local print shop like you own the place and professionally print and bind as many copies of your plan as you need.  Congratulations – you’re the proud owner of an excellent business plan.

11.      Hug your business plan – it loves you!
The final and bonus step on how to write a business plan is to have some fun.  Give your business plan a hug!

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About the Author, Scott Pollov

Scott Pollov is a results oriented professional with more than sixteen years of experience in planning, developing, growing, marketing, and financing entrepreneurial ventures, middle market companies, and commercial real estate and development projects as a consultant, capital advisor, board member, and investor. Primary focus is on bringing together a strong business plan, with the most appropriate capital, connections, and resources to help companies catalyze growth and profitability.

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