The Importance of Business Planning

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The majority of business owners understand that running a business with no any plan is similar to riding a motorbike up a cliff while blindfolded. According to a variety of studies, more that half of businesses do not have a formal plan in place.

Writing a business strategy takes time and effort, and it is essential to take into consideration the needs of your audience when you write it (for example when you’re looking for investors, your plan will require more rigor than a plan that you’re only making a reference to for yourself). While no one plan can predict the future, a well-designed plan helps you avoid common mistakes and makes it easier for you to take advantage of opportunities, and provides the framework for success–even if you do not follow it precisely.

A great business plan should begin by providing a brief overview of your company, including why you’re starting the venture and how it will fill a market need. It should also include any unique intellectual property you own that gives your company an edge. This section could also include a mission statement as well as a list of the key team members and their roles in the company.

The next section will describe the services and products you will provide as well as your pricing strategy and the way you plan to provide these. It is important to include a thorough financial analysis here that shows the startup costs you anticipate and the method you will use to generate revenue, and the timeframe you anticipate to reach profitability.

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