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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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To understand your competitors and the industry, you`ll need to do market research. Invest time and effort and do market research correctly. A business can`t succeed if the owners don`t understand their industry, target customers, or the competition.

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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.

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Highlight the key aspects of your financial plan, ideally with a chart that shows your planned sales, expenses, and profitability. If your business model (i.e., how you make money) needs additional explanation, this is where you would do it.

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Provide a brief overview of your team and a short explanation of why you and your team are the right people to take your idea to market. Investors put an enormous amount of weight on the team—even more than on the idea—because even a great idea needs great execution in order to become a reality.

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With all of this in mind, the question shouldn`t be if you write your plan, but how you draft an effective business plan that will take your company where you want it to go. The ten tips in the chapters below offer guidance and direction in answering such a question.

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