Many business owners are aware that running a company without any plan is similar to riding a motorbike across the cliff blindfolded. According to various studies, more that half of businesses don’t have a formal plan.
Making a business plan takes time and effort, and it is important to consider the needs of your intended audience when you write it (for example when you’re looking for investors, your plan will require more rigor than a plan that you’re only using as a guideline for yourself). Although no plan can predict the future, a well-designed plan can help you avoid common pitfalls, makes it easier to capitalize on opportunities, and provides the framework for success–even if you don’t follow it to the letter.
A well-crafted business plan starts by providing a brief overview of your company’s history, including the reason you’re beginning this venture and how it can meet an industry need. It should also include any special intellectual property you own which gives your business an edge. This section may also include the mission statement as well as a list of key team members’ roles and responsibilities and your company’s objectives.
The next section explains the services and products you will offer, how you plan to offer them, and your pricing strategy. Include a comprehensive financial report that details the costs of starting up and revenue generation strategies and the timeframe you plan to achieve the growth of your business.