Why do you need a business plan

If you are going to organize a new business, or you are going to apply to a bank for a loan to develop an existing business, or you decide to find an investor or co-investor for your business, you probably thought that you need a business plan, and you thought about how to write it.

A business plan is a kind of map of your business or project. He should tell in detail what your business is and what results it will lead you to. However, I want to note that a business plan is not only a document for those who start a business. And of course, you shouldn't think that if I already have a business, then I don't need to spend time writing a business plan.

A business plan is not a formality for starting a business. A business plan is a key element in developing a successful business.

Many people think that why waste time developing a business plan, that it is a waste of time, I already know everything from my business, etc. The biggest benefit of business planning, however, is that it helps you prioritize all of your priorities.

A business plan is not just a document. It provides a holistic view of where your business exists and is a guide to business success, given the availability of resources.

Your business plan should show that your business will generate sufficient income to cover the costs you incur. However, a business plan can differ depending on the audience for which it is intended. If you are preparing a business plan for yourself and your partners, then the main focus of the business plan is on information related to the technology of doing business and highlighting all the nuances. If a business plan is being prepared for a bank or lender in order to obtain a loan or line of credit (i.e. project financing), then the emphasis is on financial indicators and calculations. If you need to provide a business plan for venture capital, then it is very important to disclose information about the staff, people, specialists involved in your project. There is a saying among people associated with venture capital: "If three main points are important for a business - this is a place, a place and again a place, then for a venture capital these are people, people, and again people."

So, here are some of the main benefits of business planning:

(Yes, by the way, do you know how a financier differs from an accountant? An accountant sees and comes into contact only with what has already happened, and the financier with what will only be.)

A business plan is vital to better managing your business. By putting all your ideas together in a business plan, you will have a more complete understanding of the business you run, as well as a better understanding of what is needed to improve your business. A business plan will help to detail various scenarios, define goals, and identify the resources needed to achieve those goals.

Ideally, any business should be self-financing and use all its capabilities. However, in reality, everything happens differently. In order to develop quickly, funds are needed, and they are just not unlimited. Therefore, external funding is required. So a business plan, competently made, can help to obtain additional financing in the form of a bank loan or investors' funds.

The business plan will help the company assess all development opportunities and choose the one that will be most effective to achieve its goals.

Setting goals and priorities

Most entrepreneurs sooner or later face the challenge of writing a business plan for their new project. Few know how to do this, but our new expert is a real professional in this matter. Let's see what advice he has prepared for us today.

From this material you will learn:

  • Setting goals and priorities
  • Analyzing the future project
  • Business plan structure
  • How to describe the product or service
  • Market analysis
  • Marketing strategy plan
  • Production plan
  • Risk analysis
  • Correcting mistakes

Having weighed well the pros and cons, a successful leader will always take responsibility and decide to draw up a business plan on his own

Setting goals and priorities

"We are obliged to make customers happy by any means available!"

Alexey Molchanov, founder of the international IT company Envybox

The current situation in the country and in the world is gaining more and more momentum every day.

Today every entrepreneur asks himself the question: “What will happen to my business now?”

If you succumb to general panic and "freeze" the company's activities, it will not lead to anything good. If you see that the crisis is inevitable and the company's income is already beginning to decline, do not suspend your activities. Do not under any circumstances reduce advertising costs or stop promoting (unless, of course, you were closed due to a government decree).

Direct your maximum efforts and attention to promoting your company and increasing the flow of new customers.

In order for you to have an understanding of how to behave during a crisis, I will share with you useful tools that helped us not only overcome the crisis, but also come out of it as winners.

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