Dr. Steven Gedeon, PhD, MBA, venture capitalist and entrepreneur, cuts right to the chase in this video from StartMeUp Ryerson: “Why should you waste your time writing a business plan?” It’s an excellent question, since you’ll need six months to a year to write your business plan.
One answer, according to Gedeon, is that you probably won’t attract investors to your business if you don’t have a business plan to show them. No investors can equal no business or reduced expectations.
However, there’s another important reason for writing a business plan, according to Gedeon: “I find writing to be a guide to thinking, so one reason for writing a business plan is because it forces you to subject the thoughts that you have to the real world.”
In other words, he continues, things always make perfect sense in your own head – your business, who your customers are, why they’ll buy from you, the ways you’ll handle risk, and so on. Writing those thoughts down forces you to spot and clear up inconsistencies in your thinking.
In addition, a business plan can be a “roadmap” to the assumptions that you made when you started your business, says Gedeon. That way, when things go wrong – and they always will – you can go back to your business plan, see how your assumptions differed from reality and make adjustments.
“So the big reason for doing a business plan is it gives you the opportunity to say ah! because this changed I need to change something else,” he says.
Sierra Investment Group Inc. Carson City Nevada is a small business plan writing service and small business funding resource. They can be reached toll-free at (800) 323-6298 from 8 a.m. to 4 p.m., Monday through Friday, or at firstname.lastname@example.org