What is a business plan and why do I need one

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A business plan precisely defines your venture, identifies your goals, and serves as your firm's resume.

It helps you effectively allocate resources, handle unforeseen complications, and it guides your decision making. Because it provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan application.

Additionally, it can tell your sales personnel, suppliers and other stakeholders about your operations and goals.

Some of the basic elements of a business plan include:

  • Key activities
  • Value Proposition
  • Key Resources
  • Market Study
  • Marketing + Sales Strat
  • Balance Sheet
  • Income statement
  • Cash Flow Analysis
  • Exit Strategy

 

 

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1 comment

    I only see a need for a business plan once you have a small customer base. Otherwise, your business plan is based on projections; you can just as well consult a crystal ball. If you have a few customers, then your plans are built on real data: not fancy ideas and dreams of what can be.