Why is a business plan so vital to the health of a business?
A business plan is a written expression of the entrepreneurial vision. A good business plan serves as a roadmap for the firm and provides information in a systematic format to investors, founders and financial advisors. A plan of activities contains details of founders, business model, competitor's analysis, market analysis, financial projections and a detail report of business activity of a startup. The purpose of a business plan or investor pitch is for fundraisings like equity capital or angel investment.
A business plan consists of seven key factors:
- Executive summary.
- Business model.
- Marketing strategies.
- Competitive analysis.
- Technology & product plan .
- Operations and management plan.
- Revenue plan .
- Financial projections .
- Business valuation.
- Investment offerings.
When you need a business plan:
A business plan is the constant need of a business and its endless requirement. The entrepreneur should prepare a viable business plan, visualize everything in the stat as much you know your business and from time to time adjust your plan as per market sentiments.
At the beginning of the financial year
A new fiscal period is about to begin. You may forecast your business plan annually, quarterly or even monthly if your industry is dynamic.
For SEED / Venture Funding
When you approach VS or angel investor the first question that they are going to ask that do you have a business plan to help them make financing decisions.
When you are in a dynamic market, you see Shifting client tastes, consolidation trends among customers and altered regulatory climates can trigger a need for plan updates.
Launching a new product
Your firm is planning launch a new product or develop a new product, technology, service i.e.
Change in management
If there is substantial change in the top or middle management, new managers should get fresh information about your business and your goals.