What Is A Business Plan And Why Is It Important Referencing A Research Paper Apa
Most new businesses need both startup and operating capital to get off the ground and without a well-developed business plan there is no chance of getting debt financing from established financial institutions such as banks or equity financing from angel investors (unless they happen to be family members or close friends).And established businesses often need money, too, to do things such as buy new equipment or property, or because of market downturns.Whether you want to shop your business to venture capitalists or attract angel investors, you need to have a solid business plan.A presentation may pique their interest, but they'll need a well-written document they can take away and study before they'll be prepared to make any investment commitment.Be prepared for your business plan to be scrutinized; both venture capitalists and angel investors will want to conduct extensive background checks and competitive analysis to be certain that what's written in your business plan is indeed the case.
Writing a business plan is the best way to test whether or not an idea for starting a business is feasible, other than going out and doing it.
In this sense, the business plan is your safety net; writing a business plan can save you a great deal of time and money if working through the business plan reveals that your business idea is untenable.
Often, an idea for starting a business is discarded at the marketing analysis or competitive analysis stage, freeing you to move on to a new (and better) idea.
If you answered yes to any of the above, you need a business plan!
Whether you've just started out or been running for years, business planning can be the key to your success.
The exercise of budgeting and market planning will help you define your Target Market, your Unique Selling Proposition, optimum pricing strategies, and outline how you intend to sell/deliver your products to customers.