“By recording your dreams and goals on
paper, you set in motion the process of becoming the person you most want to
be." Mark Victor Hansen could not have spoken truer words. The idea of
writing down thoughts, goals, and dreams, is a transcendental one. In fact this
very practice has materialized to a standard requirement in the world of
business, formally known as a business plan. It is the vital blueprint for any
startup and entrepreneurs are recognizing just how drastic business can change
positively, with written foundations. So why are business plans so important?
Vision

Documenting this information is what keeps your vision alive. It is
your way of stepping outside of yourself to allow your vision to materialize. Further,
organizing your ideas by formulating them in a business plan helps you build effectively
and remove information that may be detrimental to your business as a whole. This
inherent editing and buffering allows you to keep your vision in mind; the more
you work on the plan, the realer your entrepreneurship becomes. Simply put,
creating your business plan takes you from a dreamer to a doer.
Accountability
Your ability to transition from the phase
of a dreamer to a doer often determines how serious you are about your startup.
Creating a business plan requires work and research and this investigative
nature of the process keeps you accountable in more ways than one. Firstly,
your business plan makes you accountable for your own actions. When you make a
plan and write it down you are more likely to follow through on that plan than
if you had simply stored it away in your mind. Your business plan is your
personal correctional officer, ensuring that you are working towards the
fulfillment of your startup.
Secondly, a business plan keeps you accountable to
your potential investors, sponsors, and banks (when you apply for a business
loan). At some point you will realize
that your startup is less about you and more about what service you are capable
of bringing to the table. Investors and those alike, want to ensure that you are
worth the investment: a) is there a market for your idea b) is it lucrative,
and c) how big is the return on investment. Additionally, they want to be able
to trust you and your abilities. In most cases, the primary source of
endorsement is a well-orchestrated and thought-out business plan.
To
Answer the Question: Should you really be starting a business?
A common mistake entrepreneurs make is
underestimating how much work actually goes into starting and running a
business. A business plan is one of the primary tools to weed out the weak from
the strong, the able from the disabled, and the determined from the desolate.
As mentioned above, your business plan is where the evolution of your idea
takes place. As you comb through each category of the plan and consider your
place in the entrepreneurial world, things can become overwhelming. It is at
this point that you must reason with yourself. Consider whether this is a
journey you should embark on now or, alternatively, if you would benefit by
waiting a while.
You might also reflect on whether you should partner with
someone or work individually. How much time would you have to invest daily, especially
if you’re pursuing a startup while working a full time job? At the very least,
your business plan is your platform for evaluation; don’t take it lightly.
We’ve shared some of the most fundamental
reasons for using a business plan for your startup and we encourage you to
consider them before your next venture. If
you’ve been working on a business plan tell us why it’s an important starting
point for you!
No comments:
Post a Comment
We encourage and welcome your comments