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Do I Need a Business Plan?

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Every business should have a business plan—even if your business isn’t seeking funding. As with many aspects of the entrepreneurial universe, there are many misconceptions surrounding business plans, their utility, and the scope of their function. Because of this, business plans are often seen as a waste of time. However, nothing could be further from the truth.

The last part of this book is dedicated to helping you build your business plan in a comprehensive and strategic manner, but for now, suffice it to say that your business plan is much more than just a summary of your business. It is also each of the following:

 Communication tool: The business plan communicates your opportunity to potential founding team members, stakeholders, family members, and prospective employees.

 Planning tool: In addition to helping you develop strategy, the business plan construction process forces you to become fluent in your opportunity, your market, and your industry.

 Discovery tool: Oftentimes we simply don’t know what we don’t know. The business plan construction process uncovers knowledge gaps relating to your opportunity, market, and industry in an organized and systematic way.

Also understand that despite its utility, a business plan is not a magic bullet. Even the most well-written and well-constructed business plan is not a guarantee of success or even a guarantee that your opportunity will receive funding.


Q: Is it okay to outsource the writing/construction of my business plan?

Answer: No. The whole point of the business plan writing process is to ensure that you know the ins and outs of your business like the back of your hand. A critical component of your value proposition—the backbone of your business—is identifying who will be buying your product or service and why (chapter 8). A consultant will be able to point you in the right direction, check your work, and recommend ways to collect information, but he or she should not be doing the work. There is simply no substitute for rolling up your sleeves—even if you are the only person who will ever read the plan.

Starting a Business QuickStart Guide

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