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. Writing and researching for your business plan gives you the chance to: learn about your industry, market and competitors write down exactly where you are in the market and where you're headed identify challenges you may come across and work out strategies to avoid or overcome them understand your business finances, including managing cash-flow and determining your break-even point set specific goals, timeframes for achieving them and how you'll measure performance make sound business decisions that focus your activities, maximise your resources and give you a competitive edge.
But of course the market need and market size, market growth, scalability, defensibility, and potential exits are also important. The planning process also helps you to consider possible bumps in the road and put a plan in place to better manage them if they do come up.
Your marketing plan is also a crucial part of helping you to attract funds. You can create a plan in under a month, working part time.
David Ronick and Jenn Houser are serial entrepreneurs and start-up advisers. Here are five good reasons why you should write a business plan when starting a new business.
Define objectives and describe programs to achieve those objectives. The plan allows company executives to understand all aspects of the business. Shouldn't that be in your business plan? Was this helpful?
This is life in the marketing trenches. But, how do you write a business plan?