The Value of a Business Plan
By Debbie Gregory.
Chances are you would never leave for a road trip without your GPS device, or if you’re old school, your map is in the glove compartment. The same holds true for starting a business; your business plan is the road map that will guide you through each stage of starting and managing your business.
Your business plan determines how you will structure, run, and grow your business.
Business plans are essential if you are trying to secure funding or investors. Your business plan is the tool you’ll use to convince people that investing in your company is a smart choice.
So how do you write a business plan? First you will need to determine the format by choosing either a traditional business plan format or a lean startup business plan.
The traditional business plan is very detailed and very comprehensive. You will want to include a description of your company, your service or products, an executive summary, your organization’s structure, key personnel, your future projections and if you are requesting funding, how much you are asking for and how you will use it.
The lean startup format is less detailed and advantageous over the traditional business plan if you want to explain or start your business quickly. This works best if your business is relatively simple, or you plan to refine your business plan at a later date. Be sure to describe your company’s value proposition, infrastructure, customers, and finances.
The good news about writing a business plan? It isn’t carved in stone. If you’re not satisfied with the format or need to make changes, you can always revise your plan as needed.
Regardless of which format you choose, the important thing to remember is to be concise. Your business plan works as a guide for you and your team, making it easier to identify goals and allowing you to work towards a common vision for your company. Having this kind of document contributes to the success of the business; all while enabling you as the CEO to have more confidence in your overall business goals.
Veteran and Military Business Owners Association, VAMBOA,
