Why is business plan so important for an entrepreneur
Why is business plan so important for an entrepreneur?Business Plan is so important to add value to the society as:1. an entrepreneur2. customerreveiw&3. Investor reveiw.as a plan helps to determine the viability of the venture, provides guidance & financingoptions>>it plays the key role.For anyone starting or running an existing business, having a business plan is a vital first step forsuccess.A business plan is a document that summarizes the operational and financial objectives of abusiness.It also contains the detailed plans and budgets, showing how the objectives are to be realized.Regardless of the size of the business, a business plan will serve as the fundamental to the launchand success of the business.A business plan may not get you the “sale” (investment), but it just may close it. A good businessplan may be all the credibility your Deal has.• You are stating a hypothesis about how an investor is going to make money by investing inyour Deal.• It demonstrates discipline.• It shows how you think, your reasoning process.• It gives credibility points that the investor can verify.• In many ways it will drive the terms of the investment, especially milestones, valuation andperhaps vesting schedules. (noself respecting VC will agree with this, but the truth is they verifywhat you give them)• You have to worry about what an investor “knows that aunt so”. A good plan can addressmyths, and misconceptions head on with FACTS, not opinion.A business is needed for an entrepreneur?An entrepreneur without a business plan will wander blindly and rely on luck to lead him tosuccess. Planning is essential to make the most efficient use of financial and human resourcesand to keep a growing business on track as it heads toward a central position in the marketplace.Business Planning for New VenturesA new venture might imply new business by an individual or group of partners, but it can alsomean a new branch or business that a larger company is beginning. A new venture requires
extensive planning. Entrepreneurs must be careful to think through every facet of the businessbefore starting operations. The success of the business depends on the details of this planning.Business Planning for Independent BusinessmanWill be a free from all over tension.Business planning for creating job scooperA Good Business Plan.Does the start-up plan seem thoughtful? Of course, the business plan remains an important element andwe dont neglect to look at it. While Marquis plan today is well-structured, the truth is that when wemet him it was not the strongest part of his overall presentation. But we invested in him because webelieve that helping an early-stage entrepreneur articulate a detailed plan is one of the ways that risk-tolerant investors can be most helpful.