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Moreover, business plans provide both a literal and proverbial roadmap to reach the personal and financial goals one has set out to achieve. Before writing your business plan, it`s best to spend a few days collecting information and creating financial estimates. Most of that time is spent explaining difficult questions and assumptions.

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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.

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This can be as simple as having a mentor or partner review elements of your plan, or conducting market research and speaking directly to your potential customer base.

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When writing a business plan, have an end goal in mind. You need to ask yourself, Where do I want it to go? What will my business look like? Stated differently, how do you want your business functioning in the next five to ten years? This is your vision.

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All business plans should establish strategy, tactics, milestones, tasks, assumptions, and essential numbers (projected sales, direct costs, expenses, and cash flow). All business plans should develop accountability and tracking.

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A business plan is more than a document. It`s a guide that helps you outline and achieve your goals. It`s also a management tool that allows you to analyze results, make strategic decisions, and showcase how your business will operate, and grow. In short, if you`re thinking of starting a business or plan to pitch your business to investors, writing a business plan can improve your chances of success.

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