For any young entrepreneur, a good business plan is crucial. It is a guide, not only to you, but to anyone who could potentially invest in your business, and it demonstrates to them your map to success. If they can share your vision, you are much more likely to get the investment you need, and ultimately you are much more likely to succeed.
You cannot embark on any journey without planning which route you’ll take, without enough petrol in your tank, or without adequate preparation. What if something goes wrong? What if there is an obstruction? Do you have an alternative route planned? Or will you simply come to a standstill. Establishing a business is essentially a journey, so it requires the same planning and strategising as any other journey.
If you are seeking investment, you’re not just asking for money, potential investors need to trust you, and they will ask you what your plan is. If you can hand them a shiny, organised, and concise business plan, which forecasts your growth and road to success, you’ll come across as a serious business professional. Without it, you’ll just be spouting numbers at them that they cannot keep track of or understand, and you’ll come across as disorganised and sloppy. Which would you rather be?
Not only should you have a business plan, but it needs to be realistic. Do not fill your business plan with wishy washy statements about your dreams and hopes. If you want to make your dreams happen, you need to back it up with hard evidence. You need to give investors a realistic picture of your business growth. They will be able to detect bogus claims a mile off, and they won’t like it.
As well as securing you investment, writing a business plan will enable you to organise your thoughts, and make vital decisions about your business. You might have the best idea since sliced bread, but how will you make it happen? It is very easy to kid yourself about the realities of starting a business, but you need to be absolutely sure that your idea possible. How will you make it happen? Where do you want your business to go? What exactly is your aim? These are all things you must be sure about before seeking investment, and a business plan will secure all of this in your mind, and help you to iron out the creases.
Money management is obviously very important when beginning a business, and you need to work out if you have the money to make your idea happen. The last thing a young business needs is cash flow problems, and a business plan is instrumental in handling cash flow, especially during the first couple of years, and will show how much money you need to achieve everything you want to achieve. The act of working all of this out, and writing it down will be a visual aid, for you, and for everyone else involved, making it easier for you to get on with making it happen.
So, make sure you get off to a good start and formulate a business plan. If you need any more advice or would like to learn more about business, click here to see our business courses.