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Why is it important to have a Business Plan when launching my business?
Home » Entrepreneurship » Launching a New Business » Why is it important to have a Business Plan when launching my business?Why is it important to have a Business Plan when launching my business?
A business plan is a written document that describes how you will run your business. The process of developing a business plan will help you think through some important issues that you may not have considered yet. Your plan will become a valuable tool as you set out to raise money for your business. It should also provide milestones to gauge your success.
When writing a business plan, you should include detailed information regarding all financial components of your business. You will be more likely to obtain financing if you have a developed business plan that maps out your knowledge of the start-up requirements and costs.
The plan should include: a cover sheet, executive summary, table of contents, a business section with information regarding your industry and what type of product/service your plan to sell, a marketing section that lists information on your total market plus your target market, a financial section showing past and current finances as well as projections for cash flow (monthly for first year, quarterly for next two years) and a profit and loss statement of net worth. Finally, you must have supporting documents for the detailed sections of your plan.
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