Business Plan Importance
The importance of a comprehensive, thoughtful business plan cannot be overemphasized. Much hinges on it: outside funding, credit from suppliers, effective management of your operation and finances, promotion and marketing of your business, and achievement of your goals and objectives.
But despite the critical importance of a business plan, many entrepreneurs drag their feet when it comes to preparing a written document. They argue that their marketplace changes too fast for a business plan to be useful or that they just don't have enough time, but just as a builder won't begin construction without a blueprint, eager business owners should never rush into new ventures without a written plan.
As any good salesperson knows, you have to know everything you can about your products or services in order to persuade someone to buy them. When you write your business plan, consider yourself a salesperson. The product you're trying to sell is your business idea. Your customers are potential investors and employees. Since you want your customers to believe in you, you must be able to convince them that you know what you are talking about when it comes to your business.
Before you begin writing your business plan, consider four core questions:
- What service or product does my business provide and what needs does it fill?
- Who are the potential customers for my product or service and why will they purchase it from me?
- How will I reach my potential customers?
- Where will I get the financial resources to start my business?
In order to answer these questions, you must become an expert about your own business (or to fine-tune your knowledge if you already believe you are one). You must be willing to roll up your sleeves and begin digging through information. Since not all information that you gather will be relevant to the development of your business plan, it will help you to know what you are looking for before you get started. In order to help you with this process, see the following section for an outline of the essential elements in a good business plan.
References:
• Small Business Administration
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