- January 14, 2016
- Posted by: Chris
The Need For A Start-up Business Plan
Investing in a Start-up business plan is one of the most important exercises any entrepreneur can do. This plan to aid the development of the business has immeasurable benefits, and it is very valuable to a successful business enterprise. A well written, sincerely contemplated, detailed and thorough business plan is proof of concept, it is financial justification, and above all is a road map.
Most aspiring entrepreneurs begin with an idea and using their initiative and some form of funding create a service or product around that idea. The process of developing a start-up business plan gives the entrepreneur an opportunity to flesh out all the strengths, weaknesses, opportunities and threats in their idea. By taking the time to research and identify all of these things, an entrepreneur will learn whether or not his idea even has a chance to be successful. It is the proof of concept. More often than not, this process results in tweaks to the original idea that will help it overcome issues brought to light during this process.
A very important part of writing a start-up business plan is the creation of financial projections. Financial projections are simply the aspiring business owner’s estimate of the finances needed to launch their idea and the financial results that the idea will generate. Thinking these things through, while constructing the plan will give the entrepreneur an idea of the capital investment he will either need to make himself or raise from others and the return he can reasonably expect on that investment. Entrepreneurs are naturally optimistic individuals; however being realistic is one of the most important and most difficult aspects of creating financial projections. Realistic and pragmatic financial projections help justify the business idea from a financial standpoint, not only for the entrepreneur but for outside investors as well.
Once a plan and financial projections are developed and execution of the plan begins, the plan becomes a road map for the business owner. Just as a road map guides a traveler through many choices along a route, the entrepreneur’s decisions regarding funding, hiring personnel or purchasing equipment can all be guided by the concepts, ideas, and figures contained in the business plan. However, unlike a road map that is static, a well-written strategy is a living document that changes with the circumstances. Circumstances may warrant changes to the original idea but the main concepts contained within the business plan and especially the financial projections help light the road ahead.
A successful entrepreneur will take a basic idea and through hard work, tenacity and a little bit of luck, create a meaningful and lasting business venture; Among the most important thing that any entrepreneur can do while starting a business is creating a start-up business plan. LEAP Business Plans will assist to construct a well thought out business plan that will benefit any business owner immensely and be the right move forward.