5 reasons you need a well-thought business plan, and how to do it

There are many good reasons to invest time and energy to write a comprehensive business plan. Here are top 5

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  1. A well business plan can help turning your vision into a real company with paying customers

A well-thought business plan can help you demonstrate that you understand the market, and you are able to help customers solve their problems. Writing a business plan is just like painting a room, the most important thing is your preparation. Think a bout the questions you may encounters, identify likely outcomes and points of failure. You should be focus on collecting, protecting and organizing what you learn.

Your plan should written out based on market validation from surveys and interviews with customers. How you’ll achieve it will be demonstrated through the experience and credentials of you, the founding team and your advisory board.

  1. A business plan gets everyone focus on the same direction 

A business plan can help create an opportunity for you, co-founders and the founding team to work together, to express their opinions, ideas and details to make that happen. It also helps you prove that your ideas can eventually become a real, profitable business.

These days, writing a business plan is not a very difficult work anymore. You can use many tools and templates to bring out a document. Do not rely on others to write down your business plan, but do it yourself. You should not write it as a whole, but devide it into sections. Share the plan to other members of the your founding team or advisors.

  1. A Business plan can shed light on opportunities and vulnerabilities

While building a plan for your business, you can analyze the industry and customer data, which you collect over months. If you pay attention to interview notes and ssurvey results, you could see market patterns that you have not identified yet: things that have changed in the economy, the industry itself or competition that marks vertain prior responses as new opportunities or red flags.

  1. A business plan can make a good story, which is good for your brand in the future

Anyone loves a good tale, especially a true tale. Stories of your business can get people’s attention and help them remember your business brand. They are like a tale of your business’s journey, from the very beginning: your business plan starts with problems that you and other founding members are struggling to solve, The startup team hears the call. Get help from allies, keep trying, you and your business have now gained a reward.

Business plan can also help you get a detailed narrative to attract a business partnet, deliver the facts and build connections and trust with your audience. Every version of the story of your business comes from the summery of your formal business plan.

  1. A business plan can attract investors for your business

A business plan which is very clear and answer the questions that investor want to ask is a good one. As entrepreneur, there is a question you have to answer: why someone wants to pour their money into your business? In fact, they invest on people first, then technology.

You need to foresee the problems you might encounter and bring up solution from the customer’s view: what your achievements so far? How much money you need? How do you plan to use that money? A well business plan must answer those questions.

Think of a 2-page, detachable summary and a 10-page plan, plus financials. Investors are not patient ones, they can make a swift decision. If you cannot get their attention right at the beginning of the summary, they might move on. Note that the best way to have your business plan read by a potential investor is to be referred by someone they know and trust.

And if you have done with a business plan, it is not over yet. You should always update it, and you have plenty of time to do that. A well-written business plan is what creates strong first impression; it shows your credibility and can guide your business from starting up through scale.

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