If you fail to plan, you are planning to fail.Benjamin Franklin
A business plan is absolutely essential in entrepreneurship, not every entrepreneur sees the need for it. Many are reluctant to have their plan written down. In fact, there are numerous articles online claiming that the business plan is dead or irrelevant. Of course not everyone agrees with that.
If you’re looking to raise funds from institutional investors and lenders, keep in mind that having a good business plan is extremely valuable. You should aim to have a well documented business plan that speaks for itself. It needs to be clear and easy to read and understand.
Unless commitment is made, there are only promises and hopes; but no plans
The plan is useless; but planning is essential.
Here are reasons why you need a business plan
- To make sound decisions
- To raise money for your business
- To help you identify potential weaknesses
- To communicate your ideas with stakeholders
Here are 5 reasons every entrepreneur should write a business plan.
1. It forces you to think through all aspects of your startup.
Entrepreneurs generally focus primarily on the “big idea”—less on its execution. While the nuts and bolts aspects of startup, such as setting up an accounting system, may not be spine-tingling, they’re essential. While writing a business plan, you are forced to consider how you’ll run every aspect of your business—marketing, managing, financing and more. In fact, the very areas you’re tempted to skim over are usually the places where you need to really drill down. The business plan gives your startup a blueprint for success.
2. It highlights potential problems.
Would you rather uncover a major flaw in your business concept during the planning stage, or when you’ve already spent money on a location, inventory and hiring? By spotlighting possible obstacles, your business plan lets you plan how to work around them.
3. You’ll be prepared for anything.
Even if you’re not actively seeking financing, what if an opportunity arises for someone to invest in your startup or otherwise help you launch? If your business plan is ready to go, you can hand it over and impress them. If it’s not, you’ll have to stall while you scramble to write your plan—leaving the impression your idea wasn’t well though-out to begin with.
4. It will help you explain your concept.
Looking for vendors, business partners or even employees for a business that doesn’t yet exist is a challenge. A business plan can help people visualize your future business and decide whether or not they want to be involved.
5. There is plenty of help out there.
Yes, a business plan involves some grunt work, such as market research and financial projections. But technology has made the planning process so much easier that there’s no excuse for skipping it. If you want in-person help, the experts at SCORE can walk you through the process of writing a business plan step-by-step. Also, read SCORE’s Business Plan Resources Page for tons of tools, templates, blogs and webinars.
Devise a realistic proposal/business plan according to the funder’s requirements and other financial regulations. Your bizplanhero will help kindly check on our profile will help you compile. Kindly read the full details on our blog.