Writing business plans is like creating the crucial roadmap you draw when starting a business. An unknown author said: “When you fail to plan you plan to fail.” The biggest reason for failing to plan is the perception that one doesn’t have enough time. Unfortunately for those who think that way, they will pay many times later on in terms of time spent for their failure to find time to write business plans.
The best way to show bankers, venture capitalists, and angel investors that you are worthy of financial support is to show them that you have written a great business plan. Make sure that your business plan is clear, focused and realistic. Then show them that you have the tools, talent and team to make it happen. Your written business plan is like your calling card; it will get you in the door where you’ll have to convince investors and loan officers that you can put your plan into action.
Once you have raised the money to start or expand your business, your plan will serve as a road map for your business. It is not a static document that you write once and put away. You will reference it often, making sure you stay focused and on track, and meet milestones. It will change and develop as your business evolves.