Why a Business plan?
We get it, sitting down to write out a business plan can feel like a daunting task. It’s a frustrating task if you’re not sure what you should include. It becomes even more frustrating if you don’t understand why it’s important.
A business plan is very important tool for any entrepreneur. It is a written document that helps business owners organize and implement their ideas. Here are a few reasons why a business plan is worth the effort.
If you need to raise money a business plan is essential. This document will tell potential lenders or investors that you don’t just have an idea, but you have a plan to make your idea happen. You want to demonstrate that you’re going to handle their funds with thoughtfulness.
Chances are that you’ve already considered much of what will be included in your business plan. Use a plan to help organize your thoughts. Write down what resources you’ll need, what you hope to accomplish, how you plan to accomplish it, and real expectations for your business.
Measure and Adjust
Once you’re in operation, use your plan to evaluate the expectations with reality. Does the plan need to be adapted to new or unforeseen conditions? Were there weaknesses in the plans that need to be addressed?
In short, the creation of the business plan itself has value in that it forces you to think about many details often overlooked. At minimum include the following:
Life span of your industry
Who’s your customer?
How will you attract customers?
Pricing, locations, etc.?
How will decisions be made?
Financial Plan & Projections
How much does it take to get started
What’s the break-even point?
How will your raise money?
This is such a small sample of what a business plan should encompass! Luckily we get excited about these conversations. We're happy to help you organize your ideas!