Many business owners realize that running a business with no any plan is similar to riding a motorbike up a mountain while blindfolded. However, according to numerous studies more than half all businesses do not have an official plan.
It takes time and effort to develop a business plan. It is also important to consider the needs of your prospective customers when you write the plan (for example, you will require more discipline if you are looking for investors versus those who only wish to use it as a template for yourself). While no business plan can predict the future, a well-crafted plan helps you avoid common mistakes and allows you to take advantage of opportunities, and provides a framework for success–even if you don’t follow it to the letter.
A good business plan starts with a brief description of your company’s history, including the reason you’re launching this venture and how it will meet an industry need. It should also include any intellectual properties that give your company an edge in competition. This section should include a mission statement and the names of the most important team members and their responsibilities in the business.
The next section will describe the services and products you will provide as well as your pricing strategy and the way you plan to deliver these. It is recommended to include a comprehensive financial analysis that outlines the startup costs you anticipate as well as the way you intend to generate revenue, as well as your projected timeline to profitability.