“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.