The Importance of Writing a Business Plan for Your Start-Up Business
Many start-up companies fail because they lack a map to guide them through their new business venture. Successful business owners are those who have written a clear and concise business plan that evaluates the mission, goals and aspects of their new business.
Knowledge to Succeed
A business plan can be viewed as an entrepreneur’s road map; it outlines your dreams and hopes that motivated you to attempt to start the business venture in the first place. Your business plan should layout your basic idea for your new business venture. It should explain the key variables for success or failure, thereby helping you prepare for diverse circumstances that may take place by thinking about what could go right and wrong.
The business plan that you write will be like your master plan for creating your new business venture. It will be your bridge between thought and reality. Without dreaming the desired ending result, you will not possibly see your business venture become a reality.
It is important to have a solid business plan before trying to acquire any financing. Franchisers, lenders and investors eight-nine percent of the time will require a business plan before they will even consider looking at your business idea. Investors and lenders are taking a risk with their money on you; so a well-detailed plan discussing your future plans and goals explaining why you are the one to invest in them is crucial to prospects of gaining financing. Your business plan is the only way they have to determine whether or not they should invest their time and money into your dream.
You must see the world through the investor’s eyes and most importantly think like an investor. A business entrepreneur perceives a new venture very differently than an investor does. The entrepreneur characteristically focuses on the positive aspects of the business startup, while the potential investor plays the role of the doubter, thinking more about what could go wrong.
A potential investor has one objective and that is to make the most positive return on their investment through the cash flows that will be received, while minimizing personal threat damage. Remember that investors have a very short attention span, so keep the facts straight to the point but never excluding the most important details. To be successful, the business plan should not be extremely long or so short that it does not paint a picture of success in the mind of a potential investor.
Not a lot of new business owners know or knew how to write their first business plan. You may have learnt it from college or heard a business plan language, but do you really know how and what to place in well thought out business plan to win the lenders, franchiser, and investor favor?
It is crucial that you put the time into conducting a thorough research and combine all of the information to create the best possible plan for your new business venture.
Once you compile all of the information and write a comprehensive business plan you can rest assured that you have overcome one of the major obstacles that causes ninety-five percent of new businesses to fail within their first year of operation.
A well-put together business plan will provide you with a map that will assist your through your business venture and decision making. Your comprehensive business plan will not only aid you as a new business entrepreneur in need of financial capital, but it will also remind you of why you started the venture and the goals you aimed to reach.
Take the challenge and write the business plan for you new venture to help your business survive, grow and prosper.