Why Do You Need a Business Plan?
A business plan will help you build a business that will support you financially, have an impact on those around you, and leave a lasting legacy you can be proud of.
A business plan helps you to peer into the future and predict different outcomes. Though it’s certainly not perfect, it enables you to map out where you currently are and where you’re headed. Specifically, a business plan helps you:
- Estimate total startup costs
- Project revenues and profits
- Convince investors
- Compete from the start
- Anticipate challenges
A business plan helps keep you on track. It ensures that you focus your attention on the right things and enables you to avoid mistakes that could sink you. We’re going to walk you step-by-step through the process of creating a solid business plan.
Before You Start
Unfortunately, many business plans are wildly unrealistic. The initial excitement of starting the business often causes entrepreneurs to massively overestimate how successful they’ll be and underestimate the challenges they’ll encounter.
To be effective, a business plan needs to be realistic. Before you launch, you want to be relatively confident that you have a good chance of succeeding.
In many ways, a business plan should help you decide whether your idea will pan out. You may put together your business plan and then realize that the potential outcome isn’t as bright as you initially thought. That’s okay. It forces you to go back to the drawing board.
Take the necessary time to do the market research, analyze your financial needs, and