February 7

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Why a business plan is necessary

By Entrepreneurcoach

February 7, 2021


1.  Why a Business Plan is Necessary

Without a business plan, you’re going to waste time and money. If you’re a startup then every penny and second count. This might seem extreme, but It isn’t. Starting any kind of business venture is overwhelming and tough, but luckily for you it doesn’t have to be. If you want to succeed then you need to be prepared and know where you are going, and how to get there.

Your business plan is like G.P.S., it will show you and anyone else where your destination is and the best roads to get there. You would never drive down random streets without your headlights on (at least not twice). It’s the exact same idea. You need to know what your goals are and how long it’s going to take to achieve them, otherwise you’re driving blind.

Now you might have all the money you need and already have partners, and you figure you won’t need any outside help (spoiler alert, you will).

Say you’ve got this amazing idea that no one has ever thought of, a billion-dollar idea. You know it’s going to make you rich, but the question is ​how​ is it going to make you rich. If you can’t get consumers to buy your product, then nothing else matters and you will fail. It’s harsh, but it’s reality. A business plan isn’t just about showing you where you need to go and how to get there, it’s also about being noticed. Entrepreneurs need to be seen and heard, and the quicker that happens, the faster you make money. If you go into a meeting and ask lenders for funding without being able to give them a road map of your business, then you will never get funded.

Investors and banks want to know how much your business is going to cost and when you are going to see a profit. Not only do they need to know the numbers, they need to see them. They want to know why they should invest in you. You need to know the answers to the following questions;

“Who are you selling to?”

“What problem are you fixing?”

Even if you know the answers, they want to see them in writing. Your business plan doesn’t have to be 20 pages long. Honestly some startups can get away with one page, but no one can get away with 0 pages. More importantly they won’t take you seriously, and you’re in for a very awkward meeting. Being unprepared sucks, it’s as simple as that. The thing is, you could go home after that meeting, and write up the best business plan ever, but it’s too late. You already missed your opportunity and wasted the investors time. You are most likely not going to get a second chance. 

Your business plan is the foundation of any startup, and it’s what shows the investors that you mean business. A solid business plan will show them that you are serious. If multiple investors take you seriously, then you have a much better chance of succeeding. 

Success = Money

Why wouldn’t you write a business plan?

Entrepreneurcoach

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