In this chapter, we demonstrate the value of a business plan. We list both internal and external purposes of composing a business plan for entrepreneurial ventures, discuss the main objectives to be accomplished for each section of the plan, examine how the plans can be customized based on the types of prospective investors sought, and present rudiments to follow in composing a business plan.
The act of writing the business plan serves as a valuable thought-provoking exercise. Once completed, the plan serves as an essential reference source and basis for periodic updates. Drafting your business plan is the opportunity to incorporate your knowledge of your investors (KYI) in written form to efficiently organize and plan your business and represent your business effectively to prospective investors.
What value does composing a business plan offer?
Composing a business plan is a thought-provoking exercise that provides a method for you to set goals, priorities, and strategies. The goals, priorities, and strategies you decide on should be derived from the results of your KYI research and inquiries and what I call “discoveries” made during your brainstorming process with your founding partners. A discovery is any important, actionable notion that comes to your attention as you are composing your business plan or any other planning document. A discovery is actionable in that it prompts a revision, ...