Key Factors that Make Up an Effective Business Plan

How to best plan your work and work your plan

Coming up with an exceptional business plan is no simple feat. It is a challenge that has been giving many startup business owners headaches for years. Coming up with a reputable plan for starting a business does not just involve writing your ideas down on paper. It requires you to be more than articulate in incorporating factors that will make sure that your business plan becomes a success. With that in mind, it is always advisable to put into paper a plan that will not only work in your situation, but also a plan that will guarantee the required resources to start up your business.

 

Besides the format and normal things that have been taught over and over again, here is a look at some of the most important factors that should be included in this significant plan to make it successful.

Let the Plan Fit the Business Need

At no one point should your start-up business plan appear or for that matter, look generic. This plan should be structured in such a way that it achieves or will achieve its business purpose. Depending on the idea behind your plan, it should be structured to meet its particular purpose and not become too general. For instance, your plan may be structured to get investment, others to help run a business or to support a business credit line or business loan application.

A Plan Should be Realistic and Implementable

It is true that nobody would be ready to support a business that comes with a plan that is not realistic. Realism in your business plan will obviously earn you points in the sense that the business idea that you are coming up with in your plan is implementable.

Even if your plan is brilliantly researched, perfectly formatted and exceptionally written, lack of realism in it will unfortunately be the end of it.

You should be able to Track Results in Your Plan

A perfectly written and structured plan for a business startup should be able to include various specific factors that can be perfectly traced within the plan.

They include; tasks, dates, deadlines, budgets, forecasts and metrics. All these factors should not only be realistic, but also measurable. With that in mind, you should be able to come up with a plan that can be evaluated at a later date just to ensure whether the plan was followed or not.

There should be Responsibilities for Implementation

Every startup business plan should come with clearly defined responsibilities and implementations. In other words, there should be every single person who will be tasked by carrying out a particular task and function. It always does not have to be the owner or the brains behind the plan, but there should be ways in which every responsibility has a specific person or group that will be held accountable should anything happen to that particular task or responsibility.

A Channel of Communication among the People Involved in the Plan

At some point of the start-up business plan, it should be able to stand alone as an entity. In this regard, an exquisite business plan should be clearly communicated and come with functional and realistic mechanisms on how to achieve this. From the way the business plan is presented in writing to the targeted audience, your plan should be structured in such a way that all stakeholders can easily understand every essence part of the plan.

You should try avoiding a business plan that can only be understood by the team that is drawing it, unless it is very secretive.

A Plan should ensure that Stakeholders are committed to it

Commitment to the business plan will be very crucial for its success. This will include the entire process of coming up with the plan, taking up responsibilities and following up on the plan to keep it alive and ticking. No business plan will actually work without commitment, which will rather render it static, redundant and worthless.

It is easy to see that coming up with a business plan requires you to incorporate certain factors that either work hand in hand or follow one after each other. Therefore, incorporating these factors in your business plan will be a recipe for its ultimate success.