Start Turning Your Business Idea into a Business Plan

College Students are Getting an Early Start on Writing Business Plans

We’re often contacted by students who are in the midst of a college business plan class project. In fact, we’ve even been flattered to have professors contact us about using our materials for their own classes (which we have obliged).

Individuals from both groups often express the notion that it’s hard to write a plan designed to get a business loan without divulging personal information about credit worthiness, co-signors or guarantors. Stop right there!

The number one reason most entrepreneurs write a business plan should be to clarify their own ideas. This makes the endeavor ideally suited for a college business plan class project. After all, college is about learning about yourself and clarifying one’s own ideas and ambitions. Developing your plan as a class project is a safe, unique opportunity.

You’ll find that people knowledgeable in the industry you choose are more willing to share their time and critical thinking—where they might otherwise be guarded.

Some Ask – Does a Business Really Need a Business Plan to Succeed?

Not having a business plan when starting a business is like, well, starting without a plan. Rarely does a journey that is started without a plan, get you where you wanted to go. A business plan should be looked at as a valuable tool for guiding the development and growth of a business.

A well-written and well-researched business plan can help a business to:

1. Clearly define goals and objectives: A well-written plan helps to define the overall strategy and goals of a business, and to identify specific actions that will be taken to achieve these goals.

2. Secure funding: A solid plan is often required by investors or lenders as part of the funding process. It can help to demonstrate the potential for profitability and growth, which can increase the chances of securing funding.

3. Identify and target the right market: A business plan can help a business to identify the target market and competitors, and to develop a marketing and sales strategy that is tailored to the specific needs of the market.

4. Plan for growth: A sound plan can be used to track progress and make decisions about future growth, and to identify potential challenges that may need to be addressed.

5. Communicate a vision: Your plan should communicate the vision and mission of a business to employees, partners, and investors, and help to align everyone behind the goals of the company.

That being said, a business plan is not a guarantee of success, and many successful businesses have been started without one. However, having a well-crafted plan can increase the chances of success by providing a clear roadmap for the development and growth of the business.

Your College Business Idea Could Be the Next Big Thing

The ultimate reward for clarifying your own ideas is that you might just join the ranks of mega-successful companies that started out as class projects, or by individuals still in college. They include Federal Express, Dell, Google and of course Facebook.

Regardless of whether your business plan class project is something you actually intend to pursue, find a business idea that you have some passion for. Ideally, you’ll choose an idea about which you already have some familiarity, knowledge or expertise.

It’s essential that you have the mindset of the customer of your business. Being able to think like a customer is critical to knowing how to succeed in your selected business. By contrast, few delis are started by vegetarians. Start a business in an area where you are the expert.

Create a Business in a Young Industry

Leverage Your Advantages

This is where college students have an edge. They are often consumers of new products or services that older, more experienced entrepreneurs are not familiar with. Choosing a business where nobody has 10, 20 or 30 years of experience can be an advantage.

While critical thinking and careful planning will certainly still be required, you can avoid stepping into a well-established industry with clear market leaders. Establishing your own experience or knowledge as a competitive advantage is a very compelling edge to any business plan.

Practice How You’ll Play

Forget that your class project is for a class or even a grade. Approach it like you’re really going to invest your time, energy and family’s money. In the end, your business has to work as a strategic and operational blueprint for your business.

This article will help you ensure that your plan is cohesive and complete. It’s also important that it is internally consistent.

This website, SmallBusinessPlans.com has numerous business plan examples for every section of your plan. Review them all!

Business Plans Should be Internally Consistent:

• Backup your sales forecasts with a sales execution plan. If your plan says that you’re going to generate $1,000,000 in revenue in year one, make sure your labor and advertising budgets support that forecast.

• Find financial data for similar businesses and compare your financial forecasts—particularly in the area of expenses. Too many college business plans gloss over the details. An accurate and detailed breakdown of startup costs and on-going expenses is what separates business plans from wishful thinking.

• Think carefully about your go-to-market plan. Where will you start? What is the first product or service you will offer? Who will be your early customers? Almost every $100,000,000 business started out with a few thousand dollars in sales and grew from there in a thoughtful and well-planned way. Where will you start?

What Makes a Great Business Plan?

A great business plan is one that is well-researched, well-written, and effectively communicates the key elements of your business. To determine if your plan is good, you can consider several factors.

Good Business Plans Score Well in ALL these Criteria:

1. Clarity and conciseness: The plan should be easy to understand and effectively communicate the key elements of your business.

2. Realistic and achievable goals: The plan should set realistic and achievable goals for the business, with a clear strategy for achieving them.

3. Market research: The plan should be based on thorough market research, and should accurately identify the target market, competitors, and the size of the market opportunity.

4. Financial projections: The plan should include detailed financial projections that are realistic and achievable and should demonstrate the potential for profitability and growth.

5. Management team: The plan should include a clear description of the management team and their qualifications and should demonstrate that the team has the skills and experience necessary to execute the plan successfully.

The Class May End, but a Business Plan is an On-Going Project

It’s worth noting that a good business plan is a living document, and it should be reviewed and updated regularly. It can also be a good idea to have it reviewed by experts or mentors who have experience in the field, they can provide valuable feedback and point out areas that need improvement.

Execution Matters Most

Also, a good business plan is not only about presenting a good idea, but also about having a solid execution plan and a realistic financial projection. It’s not just about the idea, but about the team and the market too.

Treat Your Project Like Your First Investor Pitch

Most college business plan class projects require a written document and a class presentation. The written documents are often comprehensive and thorough—the product of dividing the task among several participants.

Credibility is Key

Make sure your presentation is equally focused on being compelling. Avoid the temptation to make your presentation entertaining. Your plan and your presentation should make your audience (and especially your professor) say, “I could invest in this.” Who knows, maybe someone in your audience will connect you to your first investor, client, or business partner.

For more information on the specifics of how to write your entire plan, or specific sections, refer to our business plan template page.

College Business Plan Hackathons

A business plan hackathon is an event where participants come together over a defined period of time, usually a few days, to develop and present business plans for new ventures or startups. The event is typically organized by a business school, incubator, accelerator, or other organization that supports entrepreneurship. The event is usually open to students, entrepreneurs, and business professionals, and participants may be required to apply in advance or pay a registration fee.

Hackathons are Happening all the Time

To find a business plan hackathon, you can search online for events in your area or check with local business schools, incubators, accelerators, or startup organizations. Many hackathons are also advertised on social media and event listing websites.

Many successful businesses have come out of hackathons. For example, in 2011, the business plan for the now-popular mobile payment company Square was developed at a hackathon event called Startup Weekend. Other successful companies that have come out of hackathons include GroupMe, which was acquired by Skype in 2011, and LaunchBit, which was acquired by Google in 2015.

No GuArantees

It’s worth noting that while a hackathon can be a great opportunity to develop a business plan and get feedback, it is not a guarantee of success. A lot depends on the quality of the team, the idea, the execution and the market. But it can be a great opportunity to gain feedback and validation for the idea.

A College Business Plan Class Project is Great Training

Business plans are not just for class projects or even startups. They can be used by any business at any stage of development. A business plan is a document that outlines the strategy, goals, and financial projections of a business. It is used to guide the development and growth of the business, and to secure funding from investors or lenders.

As you’ve likely learned in your college classes, a startup plan typically includes a description of the business idea, the market opportunity, the management team, the marketing and sales strategy, and the financial projections. These plans are used to present the business concept to potential investors, partners, and customers.

An established business may also use a business plan to set strategic goals, track progress, and make decisions about future growth. These plans may include a SWOT analysis, market and competitive analysis, and financial projections. A business plan can also be useful in helping an established business to secure additional funding, such as from a bank loan or venture capital.

What you’re learning in your college business plan project can serve you well for many years, throughout your business journey. The structured planning process can help you chart your own map to success.

Other Resources

This website, SmallBusinessPlans.com has a business plan example for every aspect of your plan, plus detailed business plan templates. The sample business plan information here is designed to help you clarify your thinking and understand what goes into sound planning. In the end, the level of effort you put into critically thinking about the execution of your business, will determine your success.