along with a track

I was recently asked by someone why they needed a plan for their business, if they had all the funds they required from family and friends. It seemed to me like they were just thinking of a company plan as a way of raising funds. Business plans are more than just a method to raise money. They can also be used as an outline of how to build your business. It can be used as a way to track the progress of your business, to hold yourself accountable and determine the fate of your business. It can be used to draw in important staff and to attract investors.

 The process of writing your business plan requires you to look over everything at once: your value proposition, marketing assumptions, your operations plan, financial plan, and staffing plan. There are connections that you might not have noticed otherwise. If your marketing plan includes 10,000 customers over two years and there are two salespeople available to assist, it will force you to consider the following question: How do two salespeople create 10,000 customers? The best option is to create partnerships, focus on distributors, and focus on big-scale sales to big companies.

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 As part of your operational plan, you'll outline major marketing and operational milestones. You're the creator and solely accountable for making sure you achieve those goals every day. This makes your plan a benchmark for tracking your progress. Then you can ask why your prototype is not completed by February 1st. Did you experience an unanticipated breakthrough? Did someone put in a massive effort? Did you underestimate or not put in a great effort? This will enable you to do a better job next year.

 Plan isn't just a tool to learn the facts, but also a way to prepare for the future. If you write, "We expect 100 customers by the end of year one,"" it's not just a non-deliberate prediction. You don't sit and wait for customers to come in. This is the aim of your sales team. The plan sets targets in all areas including sales, expense items as well as hiring positions and financing goals. Once established, the targets can be used as performance targets.

 A well-written strategy will draw the top talent. If you're approached by a potential customer to describe your company, you can provide a detailed overview. Their responses will show you how quick and precise they are in understanding your business's key issues. A written record of your objectives, along with a track record in meeting those goals sends a strong message that you are aware of your business and are competent to deliver the results you promised. This message will be viewed by great employees and bankers and investors whenever you need to borrow money.

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 Therefore, using your plan as a fundraising tool is just the beginning. The plan will be used for various other reasons, such as to manage yourself, running the business and attracting. If you decide to skip the planning phase, consider all the implications and what they mean for your future success.