We all have great ideas; some of us explore those ideas, some even build those ideas into side projects and hobbies, then there are the few that develop their great ideas into thriving and profitable businesses.
How do they get there? Simple – They plan and are not afraid to search for the best advice and execute.
Here are our 4 top ways to create a killer business plan:
1. You need to place your brand
Developing a business plan helps to establish your company’s position in the market. The clarity allows you to explain the business, its position and purpose to consumers, investors, and possible partners. There’s no point in having a great product or service if you have no idea who will want it.
2. To uncover new opportunities
Writing it all out is not only therapeutic, but you will also most likely see your business in a new way. Through brainstorming and seeking advice as you write, you will come up with new ideas for your product/service, branding, marketing strategy and business model. If you seek seed funding, it is a great way to validate your idea by getting it in front of as many people as possible, especially people who know your space well. Don’t be too precious to withhold your idea close; getting feedback is a great way to make sure that people share your belief in the idea.
3. To attract investors
By far, the most important reason (unless you fund your idea) for a well-formulated business plan is to help attract investors. The plan will answer investors’ questions: Is there a demand for this product/service? What are the financial forecasts? How and when will they see their return on investment?
Added Bonus: The content of your business plan can be turned into a solid IM (Investor Memorandum), which is sometimes required by investors as part of your pitch. Your IM is a much more engaging way for a potential investor to understand your business. As they get many ideas daily, leaving a great first impression and engaging IM will help you stand out from the bunch.
4. It helps to share your strategy, priorities and specific action points with someone objective
Your life goes by so quickly, as do all the ideas in your head. Sharing your business plan with a mentor, business partner, or trusted advisor or friend will allow you to share ALL of those thoughts and ideas and work out, which is viable. Having a business plan is critical, even though your plan may change daily. Without having a true north, businesses can get lost very quickly and very commonly won’t recover. By going through the process, you give your business a better chance of surviving as you will have adequately established the problem you are solving, the way you are entering the market, and how you will mitigate future risks.