Business plan writing

Business plan writing is very critical when raising finance for your business. It should show potential investors that if they invest in your business, you and your team will give them a unique opportunity to participate in making an excellent return.

A business plan should be considered an essential document for owners and management to formally assess market needs and the competition; review the business’ strengths and weaknesses; and to identify its critical success factors and what must be done to achieve profitable growth. It can be used to consider and reorganize internal financing and to agree and set targets for you and your management team. It should be reviewed regularly.

The company’s management should prepare the business plan. Its production frequently takes far longer than the management expects. The owner or the managing director of the business should be the one who takes responsibility for its production, but it should be “owned” and accepted by the management team as a whole and be seen to set challenging but achievablegoals that they are committed to meeting.

It should emphasize why you are convinced that the business will be successful and convey what is so unique about it. Private equity investors will want to learn what you and your management are planning to do, not see how wellothers can write for you.

Professional advisers can provide a vital role in critically reviewing the draft plan, acting as “devil’s advocate” and helping to give the plan the appropriate focus. Several of the larger accounting firms publish their own detailed booklets on how to prepare business plans. However, it is you who must write the plan as private equity firms generally prefer management driven plans.
Business plan writing skills are important to a successful private equity financing.