For the past 20 years, my company and I have written business plans for thousands of firms. Interestingly, over this time, many aspects of business planning have stayed the same. Specifically, the three core reasons why entrepreneurs must create a business plan have not changed in decades. But today, business plans must deal with modern day realities such as crowdfunding, chatbots, artificial intelligence and more.
Below, you’ll learn the keys to creating a winning modern day business plan.
Why you must create a business plan
Entrepreneurs have and continue to need business plans for three core reasons:
- To prove the viability of your company
Particularly for startup companies, the act of creating your business plan helps determine the viability of your business opportunity.
For example, if you learn the market size is too small, you may not want to launch the venture. Likewise, if you uncover that established competitors pose too big of a threat, or the capital requirements of the business are too much, you should consider pursuing a different opportunity.
- To market your company to others
Rarely does an entrepreneur create a business plan and keep it to themselves. Rather, their business plan is often shown to prospective investors or lenders who you want to fund your company.