Well-crafted business plan! A key to success for startups!!

"A good plan is a success half-done whereas a bad plan is a possible failure in progress."

• Companies with business plans experiences  higher growth rates
• A formal business plan increases your chances of success by 16%.
• Business plan provides you a better chance of raising capital for your startup company

Does a business strategy make startup success assured? Not at all. But great planning often makes the difference between success and failure. Anyone can have a great idea. But turning an idea into a viable business is a different ballgame.

For a startup company the business plan is the blueprint for its formation, its operation, and its success. A business plan reveals the company's strengths and weaknesses. It uncovers ways to capitalize on the strengths and minimize the weaknesses, reveals every fact of the business that can be developed, and points to the best method for that development.

Why it is important

Many business plans are fantasies. That's because many aspiring entrepreneurs see a business plan as simply a tool--filled with strategies and projections and hyperbole--that will convince lenders or investors the business makes sense.

That's a huge mistake.

First and foremost, your business plan should convince you that your idea makes sense, because your time, your money, and your effort are on the line.

So a solid business plan should flesh out strategic plans, develop marketing and sales plans, create the foundation for smooth operations, &convince a lender or investor to jump on board.

With the well-prepared business plan you will enter the business world prepared, ready to run your business and ready to compete. It will improve your chances of success, and diminish your risks of failure.

 According to Harvard Business Review “the real key to succeeding in business is being flexible and responsive to opportunities.

A typical business plan must consist of the following elements:

Executive summary:- A snapshot of the company's purpose and goals. It includes a description of products and services.

Company description:- Description of what you do, what makes your business unique.

Market analysis:- Research on your industry, purchasing habits, buying cycles, market and competitors.

Competitive Advantage:- It describes a detailed analysis of both your current competition and potential competitors.

Organization and management:- Your business and management structure, it describes skills, experiences, of management team.

Product & services:- The products or services you’re offering.

Marketing and sales- How you’ll market your business and your sales strategy like advertising, public relations, promotional literature, etc.

Funding request:- It is a projection about how much the money you’ll need for the next 3 to 5 years.

Financial Analysis:- Financial projections and estimates. It includes supply information like balance sheets, cash flow statements, etc.

Appendix:- it includes résumés and permits.

Whom it can convince?

Firstly, your business plan should convince you that the idea you have for a business is not just a dream but it can be a viable reality.

1. Potential sources of financing 

If you need seed money for startup and operating capital to get off the ground from a bank or friends and relatives, your business plan can help you make a great case.  Lending naturally involves risk and a great business plan can assist lenders to understand the quantity of risk, eventually increasing your chances for approval.

2.  To attract potential partners and investors.

In case of other investors--including angel investors or venture capitalists--generally require a business plan in order to evaluate your business& convince them for investment.

3. Skilled employees. 

When you need to attract talent, you need something to show prospective employees since you're still in the startup phase, so your business plan can help prospective employees understand your goals--and, more important, their place in helping you achieve those goals.

4. Potential joint ventures. 

As a new company, you will likely be an unknown quantity in your market. A joint venture with an established company could have a significant effect in getting your business off the ground.

Summary

Launching a startup company is exciting. It’s easy to get so caught up in the moment that you rush into things. If you want to achieve success, you need to take a step back and plan things out.

Going through the process of writing a formal business plan will increase your chances of securing an investment and also improve your potential growth rate.An accurate,well-organized,&easy-to-read, business plan conveys professionalism and credibility.

Never forget that the goal of your business plan is to convince you that your idea makes sense. Because ultimately, it's your time, your money, and your effort on the line.

About Prakash Bhosale:- 

Prof. Prakash Bhosale is the entrepreneurship consultant for startups. He is a serial IT, Media entrepreneur  & leading business consultant He has Over 15 years of experience in education, corporate, IT, e-Marketing, Consulting domain. He is a columnist on business & entrepreneurship with newspaper, magazines, portals, published over  1100 articles. He is the writer of the 4 books on business, entrepreneurship, business ideas. He also guides   PhD fellows, business plans, DPR preparation.

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