Business Plan

724 WordsNov 25, 20133 Pages
1. Why do people create a business plan? Creating a business plan will help you achieve your entrepreneurial goals. A clear and compelling business plan provides you with a guide for building a successful enterprise focused on achieving certain goals within defined periods; it is also a document that can persuade others, including banks, to invest in what you're creating and running. 2. What can you use a business plan for? Venture capital Venture capital assessment of business plans - focus on qualitative factors such as team. Within corporations Fundraising is the primary purpose for many business plans, since they are related to the inherent probable success/failure of the company risk. Education Business plans are used in some primary and secondary programs to teach economic principles. 3. What should you avoid in your business plan? #1: Thinking You Don’t Need to Write One A lot of entrepreneurs think they only need to develop a formal business plan if they’re seeking investment. This is a costly folly. Writing a business plan gives you a chance to thoroughly evaluate your idea inside and out, uncover its upsides and potential pitfalls, and, most crucially, think up ways to avoid them before they happen. It’s your chance to stare long and hard at your ideas’ weaknesses and decide whether or not you can overcome them. #2: Speaking in Features All too often, people pitch their business ideas by rattling off a bunch of features. They tell you what their product does and how it works, including how it has more power, more muscle, more buttons, more everything—than the competition. But they seem to miss a crucial question: Why? Why will people care? Why does it matter that this business exists at all? #3: Writing Your Business Plan in a Vacuum It can be hard to project what the future of your business will look like. Plotting out best and worst

More about Business Plan

Open Document