Whether you are in the beginning stages of starting your own business or planning on taking it to the next level, you will need a clear and informative business plan. `What is a business plan?` you may ask. In short, it is a comprehensive guide wherein answers to the questions and problems you will face in each stage of growth are laid out in detail.
You should know what you want to get out of your business upfront. Are you wanting to turn a side hustle into a full-time business? Trying to expand your team or launch an additional location? Knowing what you`re trying to accomplish, and having questions like these in mind, can help you develop your business plan specifically to reach these goals.
Are you still unsure whether a business plan is worth the time and investment? Can`t you just jump right into starting and running your business? You could, but you`ll be missing out on some key benefits that a business plan provides.
There are four main chapters in a business plan—opportunity, execution, company overview, and financial plan. The opportunity chapter of your business plan is where the real meat of your plan lives—it includes information about the problem that you`re solving, your solution, who you plan to sell to, and how your product or service fits into the existing competitive landscape.
The business plan is a necessary but not sufficient condition for finding outside investors. The plan describes the business and what it might become, and that`s all. A beautifully written, edited, and formatted business plan will not make a less investible business more investible.
Investors and loan providers need to know that you have a solid understanding of the trajectory of your business. You need to prove that there is an attainable and sustainable need for your solution, that you have a strong business strategy, and that your business can be financially stable.