Writing business plans for your startup business has several purposes in addition to the fact that you are building the road map for every facet of your startup business:
• The planning process for a new business (thinking, exploring, researching and discussing) is a crucial step in starting your own business. A business plan ensures that you actually do the necessary preparation.
• There will be interested parties who are going to want to see your business plan. Among them will be potential partners, providers of equity capital and lenders. You must answer for yourself the difficult questions they will ask. The business plan is your way of doing that.
• A business plan should make obvious any weaknesses you may encounter once you start your business. The act of researching, thinking about, and writing business plans will force you to look at all your facts, your assumptions, and all your projections in a methodological and thorough manner. It’s better to anticipate and plan for these weaknesses before you actually encounter them and are managing the crises.
• You will show your business plan or parts of it to consultants, others in the industry, potential suppliers, and other experts. Your plan can be a basis for further ideas and new options you or they may come up with.