Building a business plan is all about research. You will spend days or weeks thinking about the type of company you want to establish, roadblocks that might stand in your way, and strategies for success that will make your journey all the more enriching. The Harvard Business Review notes that a complete business plan is also crucial when seeking funding from sources outside your personal savings or immediate social group. Creating this document allows you to establish key tenets and projections for your company’s day-to-day operation and future. Without a business plan, serious institutional and individual investors are unlikely to part with their money to support your endeavor.
While a business plan doesn’t ensure that you will successfully find investors, it does provide a framework for how you will conduct your operations and how you stand to make money in the marketplace. Institutional investors and lenders will review your documentation in an effort to decide whether the business is likely to be successful or not. Business planning, therefore, serves in a secondary role that essentially amounts to advertising yourself and your brand to lenders and investors.
Unfortunately, some business leaders fail to create concise business plan documentation, and while it is possible to find success without this core road map in place, you’ll need luck to accomplish it. Writing a business plan helps you iron out all the details and consider potential problems before you invested your time and money in the venture.