Without a business plan you may as well be aimlessly throwing darts, blind-folded, and wishing you’d hit a bullseye. No one will ever be interested in pouring funds into a business that doesn’t have a clear focus on their goals and a track record, or some other form of proof that they can get there. With a business plan in place, you will be better equipped to grow your business, to navigate hard times, and to prove to investors that your business has what it takes to go the distance. Plan for success. Plan for growth. Plan for financial gain.
There are as many methods of writing business plans as there are businesses, but they typically fall into two categories: traditional or lean start-up. Traditional business plans are more involved in the beginning and require more information to be included. These are generally what are required by lenders. Traditional business plans lay out all aspects of a business clearly on the front end. That way, when you’re trying to manage the day-to-day tasks of the business, you’re not also trying to hunt down information that you should already have. Lean business plans tend to be more broad, and highlight only the most important bullet points of the plan. These are typically used more for modifying existing plans or for hiring purposes, instead of attracting potential investors.
Reasons for Writing a Business Plan-
Aside from the fact that having a plan greatly increases your chances for success, there are many instances where a business plan is useful and/or needed. To create a company that can stand the test of time, and provide quality goods or services, it requires funding. Potential investors and lenders will want to see a clear layout of how you plan to make the money back that they will be putting in. This can also be true when trying to attract professionals to work for your company. They need to know that the investment of their time and expertise will be secure and profitable.
Even if you don’t need a loan to get your start-up in motion- because your idea is just that genius or because you’re ridiculously wealthy- a business plan is still a great place to begin. Having a plan of action will help you make informed decisions that will help you reach your goals.
Getting Started –
A business plan maps out the steps that you will take to create, operate, and grow your business. To begin the process, you should set out to learn as much information as possible on the industry you’re getting into. A good business plan outlines many aspects of a business, such as descriptions of how the business will navigate a particular market, the mission statement, company structure, and financial projections. You need a clear explanation and breakdown of the estimated costs, what goods and services you will provide, what market you will be serving, and how you plan to attract and keep those customers. It is also important to set clear expectations of all parties involved- founders, partners, investors and lenders all need to know what part they are expected to play ,and what compensation they are entitled to.
Roadmap for Success-
The research needed to write a good business plan can iron out the details of how the business will work, as well as the best strategies to reach financial goals. This information serves as a roadmap that can help set milestones for growth, as well as to identify risk and weaknesses. Assessing risk is a crucial aspect of this process, considering that nearly 20% of businesses fail in the first year. Having a deep understanding of the risk involved will allow you to prepare for success, while being ready to tackle less than perfect situations.
Potential investors will want to see the business model, the market analysis, estimated start up costs and other financial projections to make sure that your idea is worth investing in. They will require more than a sales pitch; they need to be shown the proof that success is not only hoped for, but planned for and expected.
If you are serious about entrepreneurship, then you would be wise to make yourself familiar with the business planning process. Don’t be afraid to seek advice from people who have already been through it. Learn from their achievements and mistakes. Be prepared to seek out professional help as well. Doing it all yourself is a quick path to exhaustion and burnout. If you are serious about being your own boss, gaining financial freedom, and doing so through your dream job, then reaching out to Omnis about our innovative business consulting services is your first step!
