How to Write a Winning Business Plan

Walter Grant is an entrepreneur and business author. On graduation from university, he worked in a corporate job for five years before he quit and went out on his own. His first attempt at starting a business ended in bankruptcy, but he bounced back from that setback to sell his second company for multiple 8 figures. He has since built several successful companies from the ground up.

Investors don't put money into raw ideas. They need concrete evidence they will get a return on their investment, and that's what a business plan provides. Good business plans always provide information about the three key drivers of the business:

The great thing is business plans don't have to be long winded to be useful. A single page business plan should suffice in most situations. As needed, you can take that 1-page plan, and add more details if you need something longer.

Your 1-page business plan should ideally follow the business model canvas format:

1. Why you need a working business plan. Your business plan sets out your business model — how you will create value for yourself while delivering products and services your customers value. Your business plan is your roadmap on how to do that. A good business plan should be used daily.

2. Cost Structure. Costs always drive a business, and are a key consideration. Business plans need to identify the major cost drivers, and link them to revenue streams. The majority of businesses which collapse have a mismatch between revenues and costs, don't understand their costs fully, or fail to link costs to revenue streams.

3. Revenue Streams. Revenue streams provide the operating income of the business, and will guide decisions on how the business is financed and its overall profitability. A good business plan will make informed forecasts of revenues, costs, and therefore overall profitability.

4. Value Proposition. The Value Proposition specifies the reasons why customers choose your business over your competitors. At its heart, the Value Proposition specifies the benefits that accrue to customers, and should form the foundation of any and all marketing campaigns.

1. Investors don't put money into raw ideas. They need to see a business plan, which gives them concrete evidence they will get a return on their investment. Like the cliche goes: If you fail to plan, then you plan to fail.
2. Business plans don't have to be long-winded to be useful. A single-page business plan should suffice in most situations.

OK, so here's a question if you're a small business owner. When was the last time you looked at your business plan? Or do you even have a business plan? Multiple studies have now shown companies with a written business plan grow on average 30% faster than those that do not. The other key benefit of a business plan in my opinion is preparing one forces you to be specific. You can't get away with vague ideas that crop up when everything is in your head and nothing is down on paper.

So that being said, I liked this week's book, How to Write a Winning Business Plan. Serial entrepreneur Walter Grant makes the point that a single-page business plan is enough. You can bulk it up with more details if needed, but having everything down on a single sheet of paper will give you the big picture. He suggests using the business model canvas format, where you detail your cost structure, your value proposition, and your revenue streams. That 1-page version of your business plan will give you a visual tool that you can use to manage your business more effectively.

Savvy idea, not only for startups, but for every small business. Enjoy the summary.