Likewise, your business plan should answer these questions during the short-term period, particularly one year; specifically, what your business`s goals are for the current year, and what is essential in order to make your first year a success.
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.
Writing a business plan is about establishing a foundation for your business. You`re not predicting the future, you`re working through the core strategy of your business that will help you grow. This initial document isn`t meant to be perfect but is designed to be reviewed and adjusted to help you identify and reach your goals.
Later, as the investment process proceeds (if it does), the latest regularly-revised plan will serve as a companion piece to the pitch and a key document for due diligence.
Did you know that the vast majority of business owners and entrepreneurs aren`t business experts? They don`t have MBAs or accounting degrees. They`re learning as they go and finding tools and resources to help them.
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.