What comes next after creating a business plan?<\/p>
I mean, you’re an entrepreneur. You have a vision, and you’ve come up with your mission statement. You have your goals and objectives, as well as a plan on how you want to run your business and what the general overview will look like. So, what next?<\/p>
Well, you’re not just going to sit down and expect the plans to enact themselves, that’s for sure. But first, what is a business plan? And if you haven’t created one already, how do you go about it?<\/p>
Key takeaways<\/p>\n\n
A business plan is a document describing a company’s business activities and how it plans to achieve its goals.<\/p>\n\n
Startup companies use business plans to get off the ground and attract outside investors.<\/p>\n\n
For established companies, a business plan can help keep the executive team focused on and working toward the company’s short- and long-term objectives.<\/p>\n\n
Creating a business plan is just the first step in your entrepreneural journey.<\/p><\/blockquote>
What is a business plan?<\/strong><\/span><\/h2>
A business plan is a document that explains what your business does, how it makes money and who its customers are. Internally, writing a business plan should help you clarify your vision and organize your operations. Externally, you can share it with potential lenders and investors to show them you\u2019re on the right track.<\/p>
Business plans can be of benefit to both startups and well-established companies. For startups, a business plan can be essential for winning over potential lenders and investors. Established businesses can find one useful for staying on track and not losing sight of their goals. This article explains what an effective business plan needs to include and how to write one.<\/p>
Business plans are living documents, which means it is okay for them to change over time. Startups may update their business plans often as they figure out who their customers are and what products and services fit them best<\/a>. Mature companies might only revisit their business plan every few years. <\/p>
There are numerous benefits to creating (and sticking to) a well-conceived business plan. These include being able to think through ideas before investing too much money in them and highlighting any potential obstacles to success. A company might also share its business plan with trusted outsiders to get objective feedback. In addition, a business plan can help keep a company’s executive team on the same page about strategic action items and priorities.<\/p>
Types of business plans<\/strong><\/span><\/h2>
Business plans can take many forms, but they are sometimes divided into two basic categories: lean startup and traditional business plans. According to the U.S. Small Business Administration (SBA)<\/a>, the traditional business plan is the more common of the two.<\/p>
Traditional business plans<\/strong> tend to be much longer than lean startup plans and contain considerably more detail. As a result, they require more work on the part of the business, but they can also be more persuasive (and reassuring) to potential investors<\/a>.<\/p>
Lean startup business plans<\/strong>, on the other hand, use an abbreviated structure that highlights key elements. These business plans are short\u2014as short as one page\u2014and provide only the most basic detail. If a company wants to use this kind of plan, it should be prepared to provide more detail if an investor or a lender requests it.<\/p>