When an entrepreneur has an idea for his or her business, they may think that the implementation is simple: create a business name, open up shop and start pulling in customers. While this perfect world would be great to live in, starting a business is never that simple. Choosing a business structure is a critical first step, and you have to be organized and prepared for a lot of logistical hurdle-jumping and potentially litigation.
Writing a business plan is also a huge step for any aspiring businessman or businesswoman. This is a highly structured a detailed document that is a road map for your company: how you will avoid potential problems, how you will capitalize on market inefficiencies or areas of growth and where your investments and capital will come from.
Your business plan should focus on your business’s stances and strategies regarding communication, planning and management. By building out these three areas and establishing concrete policies and plans for these areas, you can give potential investors more confidence and also provide much-needed structure to your fledgling company. Moreover, if you are in need of funding to make your business function, the business plan you write can be a key marketing tool to attract investors and implement sales strategies.
Crafting a business plan and ensuring that you have all of your bases covered is so important, and if you are unsure about this topic, you should consult with an attorney to make sure that you have addressed it properly.
Source: FindLaw, “How to Write a Business Plan,” Accessed April 13, 2017