Business plans and proposals Planning: I mentioned that the ‘writing business plan’ as one of the pivotal steps involved in setting up a successful business. By now you should understand the need for writing a business plan. Writing a business plan, for a traditional brick and mortar business, will probably take a lot of time. It may take up to 100 hours or even more. For obvious reasons, a new business needs to carry out a lot of research before a business plan can even be developed.
For an online business, a detailed and in depth business plan is usually not necessary unless you are trying to combine your online business with a traditional business. For most online business startups, the detail involved with planning a traditional business is not required. However, it would still be beneficial to you if most of the topics were still covered, even if only briefly. Having a written plan in front of you will help you to focus on important aspects of the business.
You may not have thought much about your competition or outsourcing some of your work, but things like that will impact your ability to make a profit. And you will find this especially so in the beginning phases of your business. Even you are just opening a lemonade stand in the front yard, you will still need to know what Susie is selling her lemonade for on the next street over!
Whether you land your next contract or get management’s go-ahead to proceed with your suggested plan depends largely upon the strength of the proposal you write. A carefully assembled, coherent, and attractive proposal puts your chances of success way up on the ladder of probability. An incomplete, unfocused, and sloppy proposal means you may not make it past the first rung.
Most successful businesses have created a business plan at some point, usually before their start-up. Why? A business plan is needed to address all of the central components to starting a business. It is essential to make sure that you, as a new entrepreneur have carefully thought through many if not all, of the important components of your business. Ideally, you need to do this BEFORE starting your business. What is a business plan? Business plans are generally prepared for two reasons: 1. To obtain financing for the business 2. To help determine if essential components of starting a business have been considered. Often times with new entrepreneur’s (and sometimes even with the more experienced!) they overlook certain aspects of starting a business. So the business plan helps to ensure that most, if not all reasonable questions have been answered and strategies thought about. Although business plans are often considered optional – they serve a vital importance to entrepreneurs.