Business Plan Basics
This great article from entrepreneur.com analyzes business plans and their effectiveness. Here are some highlights of some of the benefits of creating a business plan, suggestions on creating one, and the link to the article. https://www.entrepreneur.com/article/198618
A business plan shows investors more than just financial information and projections. A thoughtful and professional plan shows your level of commitment and knowledge about your prospective business. Consequently, investors feel more secure funding your business. A business plan also establishes the culture of your company and details your processes and organization. Having this in place, increases investor confidence.
A Different Type of Investing
Many would-be entrepreneurs never leave the contemplative stage of staring their business. Creating a plan causes the future business owner to invest their time and energy. This personal investment not only gets the ball rolling, but serves as a foundation on which the owner builds. Running a business requires much more dedication and sacrifice than simply being an employee. Investing personally in creating a plan helps the owner acclimate to these types of requirements.
More than just Numbers
Having a solid plan generates many financial documents. Backing up those numbers with actions separates good from great plans. Cash flow statements and balance sheets should be easily explained by solid research. Performing a marketing analysis and identifying possible clients also add value to your plan beyond pages and pages of numbers.
Keep your presentation succinct. This makes your information more readable and easier to digest. If you are using power point, do not cram too much information on a single slide. By keeping your presentation brief, you eliminate unneeded information while improving clarity.
While many may not feel a need to create a formal business plan, the benefits far outweigh the time and effort required to establish a solid plan.