8 Qualities of a Good Business Plan

Business Plan

Last Updated on January 22, 2024 by Asfa Rasheed

A business plan is essential for an entrepreneur. However, it cannot be of any good to you if it is not of high quality. Most people confuse the value of a business plan to be measured by money or enterprise size. 

However, the value of a business plan is more hypothetical compared to cash.You can write a business plan or buy it at a high cost. If you take it to a professional, investor, or bank, it can be declined. 

It is because it has not passed the test of good qualities required in a business plan. Here are some of the tips you need to increase the value of your plan.

1.     It’s Compatible with the Business Needs

Compatibility between the plan and the business is very crucial. That is why doing the market research for the plan is very important. Consider doing your research even on social media. You can buy YouTube likes at an affordable price if that’s the platform you are using.

Moreover, you will get the information you need from your viewers and subscribers about the businesses around you and which one is the best to start up. Ensure the plan you write goes hand in hand with the business need.

It will be of no use if the plan is about fruits, but the business is about machinery. The plan has to achieve its purpose for the company.

2.     Should Be Realistic and Implementable

Don’t write a business plan to please other people. You have to make it real and rather than fiction. Avoid exaggerating points on your plan. If you write a plan that cannot be implemented in your firm, it will be of no use.

It can be well-formatted, researched, and edited, but it will not accomplish its purpose if you don’t have the tools to implement it. Even if your plan requires one million as the capital investment and you don’t have a management team, it will not be implemented. 

Thus, you will use the money the wrong way and eventually create a loss instead of a profit.

3.     It’s Specific and can be used to track the business

The business plan was meant to be a guide to your business. Thus, it would be best if you used it to track the progress of your business. For that reason, the plan has to be specific on what exactly needs to be done. 

The plan has to be precise with measurements, deadlines, forecasts, tasks, budgets, dates, and metrics.As you write the plan, ensure it can be traced in the business. The plan has to show valid results in the actual business. 

When investors come to see the company, they will use the plan to check if the money was utilized well. That is why you have to be specific on what is written in the plan.

4.     Delegation of Tasks

A good business plan should define the tasks and the ones responsible for them to be implemented. You have to mention who will be accountable for every job you give. 

Also, ensure the person you delegate the task has the valid qualifications to complete the task on time and produce quality results. Before you end the plan, ensure you go through it and assign someone specifically to complete the tasks.

5.     Should Have Assumptions

Most people write a business plan as they guess what the future will look like. It’s not guaranteed that what is written in the pan will be produced on the actual business. It’s because as you write a plan, you are simply trying to predict the future. 

That is why you need to define it as assumptions clearly.When you have them under assumptions, anyone who goes through the actual results will understand that you are using your human guess. 

However, if you put it as part of the plan, it will be judged to be a failing business.

6.     Communicated To the Wright People

As mentioned earlier, every plan should have delegated tasks. Thus, ensure you note who is responsible for which task. Moreover, communication is very crucial in every planning process. 

Therefore, you have to communicate the job to the people responsible for implementing it.

7.     Follow-Ups and Planning Process

A dormant plan will not be of any use to your business. Thus, it would be best if you kept it alive by implementing it. Additionally, it would be best to make follow-ups to ensure it has been implemented as it needs to be done. 

The whole planning process needs to be in accordance with the plan. You need to follow the plan like travelers follow the map as a guide. The plan can only be effective if you make use of it. 

However, most entrepreneurs use their own mental decisions when they get to the operation of the business. They end up doing what they think is right.However, they forget to update the plan. 

It can be misleading socially if the business investor comes to follow up and realize that the plan and the actual business are different. That is why you need to follow up with the plan while you implement it in the firm.

8.     Financially Specific

The plan needs to be specific when it comes to financial decisions. You need to specify how much precisely is required in the business. Also, it would be best if you mentioned where you would get the money from. 

A good plan should have every detail and information.Additionally, the plan should mention how the money will be utilized in the actual business, and the whole process should be noted. Avoid exaggerating how much money you need for the company.

Also, you should not mention a minimum amount, yet the business requires more than that. The finances on the business plan should be realistic and equitable to the operations of the firm.

In Conclusion

A business plan is very crucial for the implementation of the firm. However, if it does not have good qualities, it may mislead you or end up being of no use to you. Additionally, if the plan does not follow the good qualities, it can be rejected by investors. That is why you need to be specific when writing it down and also follow the above points.

Apart from that, if you are interested to know about 4 Essential Factory Maintenance Tips then visit our Business category.