Lots of people want to start their own business. One of the first
things that stops these would-be entrepreneurs from realizing their
ambitions is the seemingly daunting task of writing a business plan.
Writing a business plan, though, is a rather easy task if you understand
your business, so let's take a look at what a business plan entails.
Before
we jump into drafting our business plan, we should think about why we
are writing a business plan in the first place. Most business plans are
used to secure financing for a business - whether it be a start-up or an
existing company looking for additional capital. This financing could
come from a bank, an equity or venture capital fund, friends, family or
just about any other potential investor you could think of.
Another
reason to write a business plan is to organize yourself, make sure you
have thought through all the components of your business and make sure
that it makes sense. A great idea for a product or service may not
amount to a great business unless you can turn a profit through
effective marketing, management of expenses, management of accounting
and information systems, etc.