Writing a business plan doesn’t mean you have to spend months writing a 100 page document. A business plan should be all your ideas and objectives down on paper with financial projections to prove your idea works. Firstly you should have done a feasibility study to establish what the business opportunity is, many optimistic business plan writers tend to focus only on its positive aspects. A feasibility study enables you to take a realistic look at both the positive and negative aspects of the business opportunity.
But either way, yes you need a business plan, and here’s 5 reasons why:
1. Business Plan to avoid big mistakes: The last thing you want to do is work on your start-up idea for a year, only to realise you were doomed to fail from the start. Many start-ups and business owners learn the hard way that they do not have enough capital to reach their goals, or didn`t have a viable business idea to make money in the first place. Developing, researching and preparing a business plan can help ensure that you’re heading down the right path.
2. Business Plan to counterbalance your emotions: During your start-up experience at times, you’ll be manic, maybe so passionate about your ideas you lose sight of reality. At other times, you’ll be overwhelmed by doubt, fear, or exhaustion. When your emotions get the best of you, having a business plan lets you step back, and take an objective look at what you are doing and why, what you know for a fact and what you are trying to figure out.
3. Business Plan to make sure everyone’s on the same page: Chances are, you are not building a company by yourself. Ideally, you’ll have partners, so you can launch faster, smarter, and with less need to pay employees or suppliers. Even if you don’t have partners, you’ll have family, friends, and advisers involved. A business plan helps get everyone involved in your start-up heading in the same direction.
4. Business Plan develops a game plan: With a start-up, execution is everything. That means you have to set priorities, establish goals, and measure performance. You also need to identify the key questions to answer, like “What do customers really want?,” “Will customers buy our products and how much will they pay?,” and “How can we attract customers in a way that’s cost-effective and scalable?” These are all things you’ll address during the business plan process.
5. Business Plan to raise capital. If you raise or borrow money—even from friends and family—you’ll need to communicate your vision in a clear, compelling way. A good business plan will help you do just that. A recent study found that start-ups with a business plan raised twice as much capital as those without a business plan within the first 12 months.
If you need help to get your idea off the ground, contact us for assistance in making your idea become a reality.[contact-form to=’firstname.lastname@example.org’ subject=’Business Plan enquiry’][contact-field label=’Name’ type=’name’ required=’1’/][contact-field label=’Email’ type=’email’ required=’1’/][contact-field label=’Contact Number’ type=’url’ required=’1’/][contact-field label=’Comment’ type=’textarea’ required=’1’/][/contact-form]