The Importance of Business Planning

Most business owners know that running a company without an established plan is like riding a motorbike up a cliff while blindfolded. However, according to a variety of studies more than half all businesses do not have a formal plan in place.

Making a business plan takes time and effort, and it’s crucial to think about the needs of your target audience when you write it (for example when you’re looking for investors then your plan will need more diligence than a business plan that you’re only using as a roadmap for yourself). While no one plan can predict the future, a well-crafted plan helps you avoid common mistakes and makes it easier for you to take advantage of opportunities, and provides a structure for success even if do not follow it precisely.

A good business plan starts by providing a brief overview of the background of your company, including the reason you are starting this venture and how it will meet an industry need. It should include any intellectual properties that give your company a competitive advantage. This section can also include a mission statement and an overview of your key team members as well as their roles in the business.

The next section will describe the products and services you are planning to offer and your pricing strategy and how you intend to provide these. Include a full financial report that details your startup costs as well as revenue generation plans and projected timeline for the growth of your business.