A sound business plan can mean the difference between a company that prospers and one that flounders. A good business plan communicates accuracy and credibility, and generates enthusiasm for your business. Your plan should be thorough, professional, and realistic.

General Rules

Here are some important things to remember when sitting down to write your plan:

• Your plan should be concise (30 to 40 single-spaced pages at most, not counting appendices).
• Your plan should be easy to read and understand, without typos or grammatical errors.
• Your plan should convey large and profitable market opportunities for the business.
• Your plan should convey the strength and depth of your management team.

Business Plan Don'ts

Here are some tips on what not to do in drafting your business plan:

• Don't make unrealistic assumptions.
• Don't underestimate the difficulties in growing a business.
• Don't underestimate competitors.
• Don't assume that the reader knows industry technical jargon.
• Don't include long, tedious or overly technical information.
• Don't include highly confidential or proprietary information.
• Don't avoid discussing the risks to the business. This may detract from the plan's credibility.