That step is creating a business plan. The steps that it takes to create a business plan will help make sure that you have considered all of the important factors that are involved with pursuing your entrepreneurial dreams. Here are five amazing things that your business plan will do for you:
1) It will help you develop a thorough understanding of who your competition may be with your business and if there is a market out there that needs the service or product you would like to offer. This step is what solidifies that you are considering a viable business that will meet your goals and the requirements of financers if you need them.
2) Understand the numbers and expenses of starting up a business. There are so many elements out there that you do not always think about right away. A well rounded, accurate business plan needs to consider the following:
a. Slow times
d. Monthly overhead
e. Credit lines
f. Rate of return on investment
g. If additional employees are needed
h. Accounting methods and procedures
3) The preparation of the business plan itself is quite time intensive. If you are not able to put the thought, detail, and vision of your business idea down in a thorough plan it is a warning sign. Owning a small business does require the owner to wear many hats (at first anyways). You need to pay attention to the details to have success. Keep in mind, that doesn’t mean that you have to create an absolutely polished professional business plan. You need to show that you’ve acknowledged all the facets of being a business owner in that plan though.
4) A well thought out and prepared business plan will allow you to show other people your vision. The people who see the plan will most likely play a role in your business in one of two ways. You may want them to invest in it or you may want them to participate in it. The well prepared business plan is a great indicator of solid leadership.
5) You will be able to clearly see if the business you want is a viable one that is worth the time and financial investment. If you need unrealistic results just to break even you need to re-evaluate. If you still want to do the business that is fine but your incentive cannot be financial freedom because it may not happen. When businesses do not pan out with a strong financial return people often do them as a hobby or small supplement to their income.