Monday, 11 October 2010

Why is Business Plan so Important for a Startup?

So much is being spoken about creating a clear and concise business plan. But let us first understand the advantages of have such a plan.

Funding is one of the main aspects for any business. If you go to any investor how do you project what you intend to do, in how much period of time and what are the action items? You need to present your business plan! There is another very great advantage of preparing a proper business plan is you yourself get clear vision. Many question arise while preparing it, you give deeper thoughts, do market research and arrive at conclusions. This helps you build a proper road map. Your efforts and money don’t go haphazard as you’ve clearly defined targets to achieve.

I often feel many similarities between business plan and a project plan....we often miss the deadlines, have to accommodate last minute as well as runtime changes as time demands!! Still we cannot decline that we don't require a project plan :) In its absence things would have been worse, so better spend time to prepare it and try achieving the targets. 

Business plan is like one of the initial steps without which you cannot climb up. It is worth putting time and efforts in preparing one before you get cracking to the actual stuff.

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