4 Stages of writing a business plan or why write a business plan4 Stages of For the best insights on Business PlanStarting a Development, finding good investors clickBusiness Or hereWhy Write aBusiness Plan
4 Stages of writing a business plan or why write a business planWhen you are in business it is important to realize notonly where are you heading but where you are standingright now. Here are the four major stages you pass whilebuilding your business from zero to hero.Stage 1: Business ideaThis is the starting point of every business. At this stageyou as an entrepreneur have the insight for new businessopportunity. You feel like you’d love to create and explorenew markets and bring your new business ideas to life. Nomatter how experienced (or inexperienced) you are, themost important task to fulfill at this stage is to developclear vision of your future business. There are many waysand techniques to do that (which we’ll cover in InvestEngine blog, too). And they all aim at packing your wholebusiness idea into a single vision statement. Once youhave it and it still sounds great to you, move to the nextstage.
4 Stages of writing a business plan or why write a business planStage 2: Business planAt this stage you start bringing your business idea out tothe crowd and discussing it with people. The more diversetheir backgrounds are the better. Invite professionals withwide experience in the business field you are about toenter, talk to people with unconventional ideas (notnecessarily involved in business), find and discover yourpotential clients etc. They all will give you brilliant insights,contribute greatly to your vision of the future product,outline risk and uncertainty. And with your detailed notesat hand you are ready to write your business plan.“Why write business plans” seems to be an eternaldiscussion and lots of things have been written and saidon the topic. Most popular arguments of those who saybusiness plans are no good are: nobody reads them so why waste time writing; business plans are static while the business environment is constantly changing;
4 Stages of writing a business plan or why write a business plan the idea of business plans is mainly supported and promoted by people who make living on them.So first of all let’s go through the main purpose of abusiness plan. It is aimed at organizing your thoughts,evaluating all the risks and calculating your projections.And once you have completed it, you should keep onworking with the plan, adding new information andcorrecting what turned to be overestimated. Goingthrough business plan sections is like cutting your ideafrom the stone: you are able to review it from completelydifferent angles and find answers to very fundamentalquestions of your business. So start at the beginning andtake your time to work through the template. A businessplan template will ask you certain things about yourbusiness idea. Therefore in each section and sub sectionyou should be able to just answer the questions asaccurately as possible. Again, answers can (and should)always be revised and changed at a later date. Workingwith financials is vital too: many start up entrepreneurs
4 Stages of writing a business plan or why write a business planwill instinctively overinflate projected sales andunderestimate costs. So do stay objective. And remember,if some numbers don’t play well on paper, chances arethey’ll do even worse in real life.Stage 3: Find investors and business partnersIt is unlikely you’ll be able to achieve all your businessgoals completely on your own. Finding angel investors foryour project might be as important as attracting rightpeople to your team. Private investors bring money,business partners bring expertise. Thus before you launch,you’ll perform numerous business presentations. Not all ofthem will require a business plan lying on table, but youwill definitely be asked questions concerning your businessstrategy, competitors, product features, profitability etc.,etc., etc. So consider writing business plan like doing yourhomework before any of these important meetings. And ofcourse you will appreciate having handouts and/orpowerpoint slides to support your presentation. So your
4 Stages of writing a business plan or why write a business planbusiness plan will become an ultimate source of all thesematerials for your meetings.Stage 4: Building a businessOne of the major reasons “business plans don’t work” isthat they are put aside once written. But if you updateyour plan regularly, compare actual results againstprojections, control your timing and budget, then thebusiness plan becomes a roadmap to success. Remember,that effective business plan is the one that helps you builda company you dream of.For the best insights on Business Plan Development,finding good investors click here