Getting Started on the Right Foot: Why You Need to Create a Business Plan

Many new business owners overlook creating a business plan. It is easy to do because these plans are sometimes difficult and time-consuming to develop. They can be useful, however, if you are looking for financing or investors, and they serve several other important functions as well.

What Is a Business Plan? 

A business plan establishes the roadmap for your company. It describes what your business will do, including the products it will sell or the services it will provide. It also identifies key consumer targets and describes the specific needs that your company intends to meet for these groups. A business plan often will include other items as well, such as:

  • Basic marketing plan information;
  • Local competitor analysis;
  • Financial predictions, including an estimate of ongoing costs;
  • An operational overview; and
  • A description of the tools and resources needed to get your idea off the ground.

The Benefits of Creating a Business Plan

Jumping into a new business venture without adequate planning can lead to problems with cash flow, inventory, staff, marketing, and a lot more. Developing a business plan forces you to think through the many interconnected aspects of your business in ways that you may not have considered. For example, your business plan can be used to:

  • Estimate start-up costs;
  • Determine how much capital you will need to maintain your company over its first few years;
  • Decide how to position your business to compete with others in the same field;
  • Anticipate and address potential problems before they harm your idea or company; and
  • Provide information to investors or lenders to show them you have a viable plan of action. 

A good business plan will guide you to a better understanding of what you are trying to accomplish and what you will need to get there, giving you a path you can follow to achieve your success.

Starting a new company is a huge undertaking, and it requires a lot of forethought and planning. Integrated General Counsel can help with this process, so call us today if you need a business plan or would like to learn more about our services.

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