In creating and building a business, the entrepreneur from the get-go must assume all the responsibilities for the development, management, as well as the risks and rewards of growing their business into a trusted and sustainable brand. One key aspect of this process is the ability of the entrepreneur to develop a business plan.
Many businesses do not survive because owners fail to develop an effective business plan. A well finished business plan communicates the product and service to others and provides the basis for strategy and direction of the business. A business plan is a written description of your business’s future. As the cornerstone of every successful business venture, a business plan grows with the business and is not meant to be a one-time effort but should evolve into the strategic planning process of the business. A Business Plan can serve several purposes for the entrepreneur;
- It is used by the investment seeking entrepreneurs to convey their vision to potential investors. The classic business plan writer is an entrepreneur seeking funds to help start a new venture. Many great companies had their start-ups on paper in the form of a plan that was used to convince investors to put in the capital necessary to get them under way.
- Creating the business plan helps the entrepreneur better understand their competition. Every business has direct, and indirect competitors and it is critical for the entrepreneur to understand their company’s competitive advantage. The Business plan powers the business owner to analyse the competition, and to figure out what they must do to gain competitive advantage if they do not have one presently.
- It may also be used by the entrepreneur to attract key employees for the start-up. To attract and retain top quality talent, a business plan is necessary. The business plan does not only highlight the core skills and talents the entrepreneur needs to onboard to grow their business, but also inspire the employees that the idea, product, or service is sound and that the business is assured to achieve its strategic goals.
- The business plan indicates who the Target audience of the business is. Creating the business plan helps the entrepreneur to define the role of their business in the marketplace. Once the target market has been identified, consider the target audience the intended recipient of your products or services. The business plan provides a clear focus of whom your business will serve and will outline why they need your product or service. This will keep your business in business.
- The business plan helps the entrepreneur to identify and attract the right partnerships for their business. Potential partners also would want to see a business plan to determine whether it is worth partnering with your business. Establishing partnerships often requires time and capital and companies will be more likely to partner with your business if they can read a detailed explanation of your company.
New business owners often avoid creating a business plan because of the amount of research required to develop the necessary financial projections, and strategy for the growth of their business. Innohub as a business accelerator, management consulting and impact investment platform supports entrepreneurs by providing market research, market entry support, business advisory, and other business development and growth consulting services including business planning to help strategize, sustain, and grow the entrepreneur’s business. The only person who does not need a business plan is the one who is not going into business.