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To help you pull a plan together, there are – of course – plenty of software solutions. The forecasting and economic consolidation that happens in your business plan makes talking to the bank – or VC or neighbor or rich uncle – that much easier. When you go into the bank, you’re going in with a clear message about what you do, who buys it, and how much you’re expecting them to spend with you over time. In addition to putting your own thoughts on paper and making the organization process more structured, a good business plan is also your pitch. Is it a super good idea that we’re all about to adopt? Not even close.
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Could you build a house without drawing up a blueprint? Sure. In the same way that a blueprint is the physical manifestation of a building plan, a business plan is the physical manifestation of your business goals. I say, “It gives you,” but really it’s just a template for managing your own thoughts. It helps you focus in on the things that you do best and it gives you metrics to determine what your success looks like. These two problems can both be addressed through a solid business plan.Ī business plan tells you – and anyone you decide to share it with – what your core function is. Even if you’re just going to be making websites in your bedroom, you’ll need some money for internet access, food, and some software or hosting. What are you going to bring to the marketplace that no one else is providing or how are you going to provide an existing product in a “better” fashion? Second, you’re going to need some cash. A new business generally needs two things.