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7 Reasons Why You Should Write a Business Plan

Many entrepreneurs consider the writing of a business plan as an obligation, as something that just has to be done, without to think why they actually need it. Others believe that, if they are not to pitch in front of investors, they don’t need to worry about business plan and to “waste time on writing it”. The business plan is not just a tool that will help you win finding for your startup, it has many other different purposes and here we will talk about some of the reasons you need a well-written business plan.

Strategy development

By writing a business plan you are helping your way to developing strong business strategy and extensive and comprehensive execution road map. As we know, in entrepreneurship execution is crucial and by creating strong action plan you are increasing your chances of making better decisions and focus on what is really important.

Lucidity

By writing a business plan, you are to make your road map clearer for yourself, for your partners and for future investors. The business plan is essential when you pitch in front investors and you should be ready to meet their high expectations in order to succeed to impress them and win their attention.

Set goals

Your business plan is the one tool that will help you establish clear goals, set your priorities and determine how you will be measuring the achievements and accomplishments after reaching specific milestones.

Preparation

Well-written business plan will help you determine where the critical points of your startup are, where your weaknesses and where your strengths are. It will help you to feel more prepared for future mistakes, because you will definitely make many mistakes along your way to success.

Raise money

Let’s be honest, the business plan is the most important thing the investors want to see from entrepreneurs. They have high expectations and are taking huge risk by investing in an early-stage company. The business plan will show the investors the information they need to help them make their final decision about will they or will they not invest in your startup.

Attract talent

Talented people who have the skills that compliment yours and who have the relevant experience in the sector you are to enter can risk a lot if they decide to join a startup. So, by showing them well-written business plan you are to make it clear that you are prepared and that you have clear vision over your company’s future.

Stay realistic

When you write a business plan you will comprehend how many problems and obstacles you will have to face. You will face the truth that the competition is strong, that the expectations are high and that you are more likely to miss important things along your way. This is a wakeup call for many entrepreneurs who are that passionate and that enchanted by their dream that they tend to forget that it requires a lot more than an idea to create a profitable company and a growing startup. By writing your business plan you are to realize that you need to be more realistic in your expectations.

─ May 12, 2015