There is no excuse for going into business without a carefully crafted business plan. Some people do it. Most of the time it is because those people have never heard of a business plan.
Now you wouldn’t start out on a journey without a destination, would you? And once you have determined your destination, you want to determine how you are going to get there.
That is what a business plan is. It is a map that tells you the path you need to follow to get to the business goal you have selected.
The business plan is a necessary foundation for every entrepreneur. Knowing where you are going and how you are going to get there is essential. It is foolish to start out with your entrepreneurial ideas and think that it is all going to fall into place. It just does not happen that way.
Great so now you understand why you need a business plan, what is a business plan? As always, the Internet is here to serve you. All you need do is put in a few search terms and you will eventually come across help from the Small Business Administration.
That is a great resource for budding entrepreneurs.
As important as it is to have a business plan it is equally important that your business plan be realistic. Bankers talk about how people come in with business plans that never take into account possible setbacks. Setbacks are a part of business. Every successful entrepreneur will tell you that the road from start to success is strewn with potholes.
One of the biggest mistakes that new entrepreneurs make is believing that their product or service is going to catch on right away. Not only do most not catch on immediately, the sad truth is that most never catch on at all. That doesn’t mean that yours won’t. It means that you have to pay close attention to every little detail. That should not discourage you. Those entrepreneurs who do not make it often fall into the “didn’t carefully plan” category.
Funding and cash flow are two very important considerations. Have you ever read a story about how some successful entrepreneur maxed out all his or her credit cards to fund their dream? The reason those stories make the news is because they are the exception. The stories about all of the people who did that and failed don’t seem to get the same press.
In reality you probably are not going to see a profitable operation for about two years. If your plan doesn’t see that far into the future it really isn’t much of a plan.
Do your homework. Research your market. Come up with a viable plan. That is the foundation you are going to need. If there is a need or desire for your product or service, you can make it happen. But you can’t make it without a plan. And that’s the truth about why you need a good business plan.
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