Storytelling in Business Planning: Why You Should Tell Yours
A Common Mistake: Not Telling Your Story in Your Business Plan
A common mistake I see as a business plan writer is that clients don't tell their story. They limit it to just a brief sentence or two, believing that it doesn't belong in a business plan. They believe that a business plan for lending must be 100% strict, analytical and factual with no room for passion.
But nothing could be farther from the truth.
We are all human, including the prospective investor and the loan manager at the bank. We all resonate with the human element, where stories and passion move us. Here are several reasons why it is so beneficial to tell your backstory, your "why" and your passion for building your business.
1) Your Passion: A Powerful Edge
It Provides Fuel & Perseverance
We all know how hard it is to start your own business. It requires extraordinary resistance and perseverance through the endless risks and challenges you will face. Your backstory, your why and your passion is fuel to carry you through all of that.
Gives You A More Competitor Product or Service
When you make or deliver something with passion, the customer feels it. The results in (a) higher customer loyalty, (b) better product or service, and (c) growth through positive word of mouth.
Can Attract Key Partnerships
Passion also often attracts key partnerships that can take your business to to the next level. Everyone loves to support a person with a dream who is making it happen, and there are endless opportunities for everyone to profit.
It Demonstrates Strong Understanding of Your Industry & Customers
Imagine you come from a background where your parents operated a car dealership. Since a child you helped work at the dealership and today want to open your own. Who knows used cars better than you? You know cars, margins and can see gaps in the marketplace. Therefore, this should absolutely be highlighted in your car dealership business plan.
2) Your Story: Stories Help Humans Better Understand
Shows a Deep Understanding of the Market
In addition to all the necessary marketing analysis, sales and marketing plan, operations plan and more, a business plan offers maximum clarity when the reader understands how this business came to be.
For example, imagine you are a mother of 3 and struggled with long waitlists for years in your local area and decided to open your own childcare facility. The business plan for daycare should absolutely tell that story. Your story illustrates the struggles faced by parents in your community because you lived it and the strong need for a solution that you will provide. As the reader we feel the problem and solution, as you bring it alive through your personal story.
Building a Connection Beyond Numbers
Your story is the thread that connects the different elements of your business plan. When you share where your passion comes from, it gives life to the numbers in the financial projections. It makes the marketing strategy more relatable and the operational plan more credible. By weaving in your narrative, you help the reader to see your business plan as a dynamic blueprint of your vision, not just a static set of instructions.
Emphasizing the Human Element
A business plan that includes your personal narrative emphasizes the human element, which can be particularly impactful when dealing with banks and investors. They are used to seeing countless pitches and proposals—what they don't often see is the person behind the plan. By introducing your story, you make your business memorable and distinctive.
3) Your "Why": And It’s Importance
Makes You More Trustable
Banks and investors don't just invest in businesses, but more importantly the owner-operators. Your business plan should tell the reader why you are starting this business or why you started it originally. Maybe it's a passion, maybe it's an idea you've had for 10 years, or maybe it's just a way to make fantastic profit. By telling your why, we understand you through your motivation, which creates trust.
Shows Commitment to Your Business
Moreover, your “why” serves as evidence of your commitment to your business. It shows that you are not just pursuing a fleeting opportunity but are deeply invested in turning your vision into reality. This level of dedication can be incredibly persuasive to potential investors or lenders.
Story Doesn't Replace Analysis - It Adds to It
I am not saying that a business plan should read like a storybook. No, you still absolutely need to include all of the necessary analysis, business descriptions, risk analysis and projections like any other business. By adding your story you do not retract from this technical analysis, but rather you add to it.
Creating a Narrative of Success
Every story has a beginning, middle, and end. In the context of your business plan, the narrative you create should take the reader on a journey from the inception of your idea through to the vision of your business's future. The challenges you've overcome and the milestones you've achieved can form the plot points of this narrative, providing a compelling argument for the success of your business.
Conclusion: Your Story is Your Strength
In conclusion, storytelling in a business plan is not about creating a work of fiction or diverting attention from the facts. It is about using your unique journey to illustrate the strength and potential of your business. Your story is a source of power and should be leveraged when preparing your business plan. At Newton Group Marketing, our team of business plan experts work to prepare the strongest possible business plan to successfully reach your funding objectives.