Stop writing this business plan! You don’t need it There are only two reasons to write a business plan: increase funding or go on an ego trip.
What else? Well, there are all kinds of internal studies, some with excellent diagrams and a lot of oral. But these are not “business plans.”
Number A “business plan” means money.
Government offices and college campus counselors repeat the mantra “do a business plan.” This is not true. This is also not honest. When I advise prospective business owners, I ask two questions:
1. Where are you now?
you. Which way are you going
It is not always easy to answer them. But you need to know this before you start your own business.
Starting a business means that you need a direction, not a specific goal. Our world is changing so fast that the future is a dynamic goal. It’s more important to be able to adapt to changing circumstances and evaluate your marketing practice on a daily basis than to say, “I need 100 customers a day to be successful.”
Most business owners need to do background work on potential customers, or apply for a patent, or any kind of issue. And, yes, business plan elements need to be completed.
You need to do basic research on your market, and know – really know – that the market exists.
You need to research your competition and identify why your company is better.
You need to run some good numbers. Find out how much it will cost, and make sure you get it.
You just have to be more discriminating with the help you render toward other people. The market changes so much every day that no business person can afford it.
But if you do not need to write a business plan unless you plan to increase funding. If you do not plan to increase funding soon, do not do so. You are wasting valuable time on your business.
Keeping a business plan together is one thing to keep all the information in your head, or in your desk drawer. A business plan is a convincing document designed to convince lenders that you have found a great business. This is a sales tool. It is built with approval for graphics and layout as well as information.
The business plan is not comprehensive. its not possible. It should only be 20-25 pages long, and you can’t put everything in that space. It is selected in its disclosures, these disclosures are mainly in favor of business. This is a document that tells lenders and investors:
why is this a big business
on Who’s on the team
Why the market is strong
the Why Pricing is Right
And most importantly,
How is the lender / investor going to make money?
It’s one thing to know yourself. Convincing a lender is another matter. And that’s why you write a business plan.