In real estate, where the three biggest criteria are “location, location and location,” the venture capital axiom is “people, people and people.” VCs will ask, how experienced are the people that are going to run this business? A successful business plan: Your business plan is the most important management tool you have.
It defines your strategy, tactics, and specific activities for execution, including dates and deadlines and budgets and cash flow.
Anyone who sees errors while reading your plan will wonder whether you are going to make similar errors in running your business.
A great business plan is the best way to show bankers, venture capitalists, and other investors that you are worthy of financial support.
Our research shows that business plans are all about walking the walk.
People who write business plans also do more stuff." And doing more stuff, such as researching markets and preparing projections, increases the chances an entrepreneur will follow through.
The plan document, when and where it is required, is like your calling card; it will get you in the door where you’ll have to convince investors and loan officers that you can put your plan into action.
You want your calling card to look impressive, so make sure your business plan is printed out on good quality paper, you have checked the spelling and grammar, and that your numbers add up.
Everybody running a business wants a business plan to help focus strategy, manage milestones, manage metrics, assign and track responsibilities and performance, and manage money using projections for sales, costs, expenses, and cash.
This doesn’t require the big formal business plan document (complete with complicated business plan components) you fear like a term paper. It probably lives on your computer until you have to share it with somebody outside the team.