Many entrepreneurs want to jump in to the figurative pool without even considering the potential risks of operating a business, or even planning how their business should function. Picking the proper business structure is just one step of many that need to be taken in order to bolster your chances of operating a thriving and successful company. A business plan is a critical part of organizing yourself and your company so that you can have the best possible chance of achieving your goals.
Writing a business plan may not sound like the most interesting task you can take on, but it truly is important. Writing a business plan will give you and your company a clear vision for moving forward. The plan will allow you to focus on areas of need, avoid potential risks, prepare for the expenses and profits of a business, craft your marketing strategy and even attract investors.
In general, a business plan should include a number of important matters:
- The purpose of your business (summarized)
- The details of the organization and management of the business
- An analysis of where you fit in in the market (and be honest)
- Strategies for marketing and sales
- Any requests you may have for funding or investments
- Financial details of the company, such as the expenses related to starting up the company and detailed projections about future revenues and costs
- Supporting information and resumes about the people who run the company
Source: FindLaw, “How to Write a Business Plan,” Accessed March 28, 2017