The basic concept of a business plan and why you need to build one in for your business to thrive.
When we have a business idea, we are tempted to jump into entrepreneurial mode and setting up our business without analyzing its viability. Writing a business plan is a crucial step to check the viability of your business before investing too much time and money.
The purpose of a business plan is to help you articulate a strategy for starting your business. It also provides information on the steps to be taken, the resources needed to achieve the business objectives and a timetable of expected results.
Keep in mind that the business plan for any business will change over time as the company develops, and any business may have several business plans as its objectives change.
If you're not convinced yet, here are some good reasons to write a business plan when starting a new business.
We have already said that the business plan is our roadmap. A good business plan will guide you through every stage of starting and running your business. You will use your business plan as a guide for how to structure, run and grow your new business. It is a way of thinking through and detailing all the key elements of how your business will operate.
A well-thought-out business plan helps you step back and think objectively about the key elements of your business and helps you make decisions as you go forward.
Business plans help you get funding or bring in new business partners. Having a well-thought-out business plan will help investors get a better idea of your business, see it as more tangible and ultimately make them feel more confident that they can get a return on their investment. Your business plan is the tool you will use to convince others that investing in your business is a smart decision.
However, to have a better chance of convincing potential investors or partners, it is important to know what kind of documents they expect to receive from you and what information they expect to find. All these topics will be covered in the following modules.