Importance of a Business Plan

Before a business is able to commence on its operations, it is important to have some specific details about the business mapped out. This actually varies from size to size as it can be just a few sentences or even take over a hundred pages containing different formal sections, title page and table of content. Basically, a typical business plan has an average page range of 15 – 20 pages and if comprehensive, it should consist of three sections – The business concept, the marketplace and the Financials section. These sections are the further broken down into seven more components which are the business overview or summary of the plan, the business description, market strategies, competition analysis, design and development, operations and management, and financial information. However, it does not matter how long or lengthy a business plan is, what matters is, the level of importance that should be attached to a business plan should be high. In this articles we will be looking at the importance of a business plan

A business plan makes direction of the business clearer

The main purpose of writing a business plan is to have a clear view of the business and what the business’ goals
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How Do You Know Your Business Idea is Good?

Investors want to fund good business ideas. That’s a broad statement because what seems like a good idea to me may be different from what seems like a good idea to you. So many ideas never seem to go anywhere. Some are just so uninspiring that they can’t seem to get the attention of anyone, much less investors. You can even write a whole business plan around a bad idea, leading to great disappointment when investors spot the fact it’s bad.
A good business idea is much more than just an idea. You can sit there all day and come up with ideas, but that doesn’t make them good. Good business ideas have certain qualities that differentiate them from other ideas. For one thing, a good business idea fulfills an unmet customer need, and it is often a need the consumer doesn’t even recognize yet. That may sound odd, but great ideas are often not great until someone invents a product or service.
Determining if a business idea is a good one requires more than just knowing the market will appreciate products or services. The idea must be feasible and realistic in terms of production costs, the time from funding to sales,
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Think of Funding When Writing Business Plans

One of the mistakes made during the writing of business plans is treating business funding as if it is a completely separate section with no real relevance to the rest of the plan. In other words, you write your executive summary, business description, market strategies and analyze the competition in a funding vacuum. Then the financial section gets tacked on, and it basically states you need money and here’s how much money you need.
But investors read business plans closely, and they are looking for a particular type of company that fits their requirements.  The words you choose to describe your business and the presentation counts. For example, if you are looking for a business loans from traditional lenders, they are not going to be impressed with hype in the least. You may have the most “stunning” invention ever created that will change the way mankind lives once your product hits the market, but a bank is going to see that kind of claim as marketing hype.
Professional From Beginning to End
Business plans are unique products. They must be interesting, professional and well written while being interesting, entertaining and exciting. That’s not easy to accomplish which is why so many entrepreneurs decide
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Angel Investors Offer More Than Money

Angel investors are known for investing billions of dollars investing in start-ups and have funded tens of thousands of small businesses. So it’s reasonable that entrepreneurs developing business plans will associate angel investors with money first. Yet angel investors have a lot more to offer business than just financing. They also have entrepreneurial skills, market knowledge and business savvy, which are all assets that new businesses can and should use to their benefit.
Angels spent considerable amount of time in a process called due diligence. They use their knowledge and business analysis skills evaluating business plans with two goals in mind: earn a designated return of investment and limit risk of loss. Investors consult with a number of professionals and get expert advice from a network of attorneys, accountants, business analysts and investor associates. For every entrepreneur initial rejection of funding by potential investor can also be an opportunity. Opportunity to learn from the reason of rejection, the business plan can be perfected for future requests using the information gleaned from the review process.
If the business plan is accepted, many angel investors offer time and advice as well as money. It’s not a case of interfering in the business or its
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