There are so many priorities when working in a startup, not to mention that you lack resources and have to wear many hats. With so many balloons in the air and exciting opportunities, you may find that sitting down to write a business plan can seem pretty mundane – you are a budding entrepreneur, after all! The point is, a business plan can only serve you well and should be viewed as a tool to help you get there. So if you’ve postponed your next meeting to discuss your business plan, that’s why it’s not a smart move and should be a priority.
It’s the first thing an investor wants to see
Did that grab your attention? If you don’t write a business plan for your company, write it for future investors. No sane businessman or woman will invest in your startup unless you have a business plan that shows who you are, where you are going, and why you have reason to believe this startup has legs. Being able to clearly articulate your primary function and how you differentiate yourself in the market is incredible value, and an investor wants to see that you have a one, three, five, and ten year plan to capitalize on their investment. and see a healthy return.
He will guide your team and your partners
As an exercise, I want you to ask your team members and partners to talk about your business. If you don’t have a business plan, I can guarantee that each of us will be slightly different from our neighbor. How could they not? The vision and trajectory they are aiming for is something that has been communicated first-hand or second-hand, and there is no official document to refer to to guide them in their efforts. If you have a team that you are particularly proud of, use their skills and invite them to come up with a business plan with you. They will be much more involved if they participate in the creation of this critical tool. From there, work out your business plan in a meeting with the remaining staff and be sure to ask questions and resolve issues. It will truly be the best investment of your time.
How are you going to measure and report your success differently?
While a business plan is a great tool for planning the future, it’s also a great yardstick for measuring the past. Wouldn’t you like to look back a year from now and see how you worked towards your main mission, and also change some elements of the business plan to reflect the new status of the work project? Whether attracting talent, investors, clients or the press, every startup must prove itself – this business plan will allow you to achieve measurable results that you can communicate to the public and wear with pride. You also want to think about the content you post on your website, social media, and LinkedIn, and say, “In the first year, we hit our goal X,” as opposed to something in general that doesn’t really mean your success.
If you can’t find the time to sit down and write a business plan, you have to give something. Invest this precious time in your business plan for your startup and see how this simple tool will radicalize your business and lead to growth and potential.
