Starting a business can be a very difficult task. The most single important thing that anyone starting a business can do is to write a business plan. The business plan will determine if your business idea is worth starting and if your business idea will actually make money. The business plan is the one single item that banks, venture capitalists, and private investors will require of anyone seeking money to start up a business. While writing a business plan always seek advice from experts in the industry you are trying to create a business in.
In developing my business plan I have researched a number of experts in order to learn how to write an effective business plan. One expert that helped me to write an effective business plan is Dave Lavinsky. The advice given by Dave Lavinsky is to create a business plan based on an idea that can be marketed and make money now. Too many would be entrepreneurs make the mistake of thinking people would invest money in their company based on a great idea. The economy has caused a shift in the investment trends for venture capitalist. Your business idea needs to be able to cash flow within the first year or better. While writing my business plan I researched other companies to see what made my company uniquely different from any other company in the market. I also developed my business to key in on an overlooked niche target market.
David Grumpert the famed author of “Business Plans That Win” advises that a person must determine what kind of business plan fits your company needs. After doing my research I determined that I needed a full business plan for my film company. A full business plan consists of 25-35 pages. I recommend 25 pages at the most because banks and investors tend not to read your entire business plan but rather target key areas.
My business plan changed significantly based on the advice of experts in the industry. By heeding this advice my business plan is more realistic and more suitable for investors and banks to fund my company. I would advise anyone to first research what the experts in your industry are saying about writing a business plan and obtaining funding.
1 comments:
Crafting a business plan is the first step in building a business. Through it you can determine whether your venture would succeed or fail. Understand your target niche and the character of the people therein. Doing that can help you determine the path of your action plan.
Kevin Beamer
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