“By failing to plan, you are planning to fail.’’ (Benjamin Franklin, Inventor, and Businessman)

As a budding entrepreneur, the need for a well-written plan that communicates your intentions to internal and external stakeholders cannot be over-emphasized.

The purposes of a business plan include:

  • A business plan describes the venture you will create to exploit an idea or concept.
  • A business plan is a written document that describes in detail how the business is going to achieve its goals.
  • A business plan lays out a written plan from an operational, marketing, and financial viewpoint.
  • It serves as an action plan, road map, fundraising, and sales tool.

Common mistakes in writing a business plan include:

  • Vague value proposition – mostly existing ideas
  • Difficulty laying out the operationalization of idea
  • Extremely optimistic financial projections – no sensitivity analysis
  • Improper definition of your market
  • Inability to identify risks and possible mitigation

A bankable business plan should have the following critical elements:

  • The Company Overview
  • The Marketing Plan
  • The Operations Plan
  • The Financial Plan

In our next post, we will explore each of these critical elements in further detail.