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Starting your business

Step 1: Make a plan PART 5 OF 6

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Five tips for writing the perfect business plan

Tony Vogt, director of the Small Business Development Center at the University of Dayton, offers these five tips:

1. Don't try to write a plan front to back. Begin with the key elements of your business - the product, the service and how you will be unique in providing that to your customers. Financials and the executive summary are often the final items written since they are dependent upon the key elements.
2. Write a very rough draft first. Don't try to fill in every section with details and don't try to write it with final form text. There will be plenty of time to polish your writing at the end. First get your ideas on paper and make sure they make sense.
3. Do it yourself. Some people hire someone to build their business plan for them. While it may appear to make sense, it's not a good idea. You have to understand the fundamentals of the business to write a good plan, and you should be the expert on your business. Being able to speak about your business in detail is just as important as having a document that does it too. By writing the plan yourself, you are better prepared to speak with lenders and customers about your business.
4. Listen to your critics. Many success stories are highlighted with the tales of " ... they told me I'd never make it" or "...everyone said I was crazy to try it", and to some degree this can be true. But if your friends and family are reading your plan and coming up with reasons why it won't work, don't just wave them off as naysayers. Turn their criticism into your core competency. For instance, if they say your prices are too high, think about other services or value you can you add to your business model to justify a higher cost. Or, how could you cut your costs to price your products more reasonably?
5. Talk to someone who's been there. Much of the advice from the Small Business Development Commission is based on personal experience and that of others. You can often find a business mentor who has been through the process and would be happy to share their dos and don'ts. Ask a successful business owner if he or she is willing to read your plan and offer insight into how to make it better. Just make sure they're not your local competition.