Everyone has heard of a business plan and most know that it’s an integral part of business (especially if you’re seeking investment) – and this document can essentially make or break a business.
A strong detailed plan provides a crystal clear road map for the future and forces you to think through the feasibility of a business idea – it can also, after research, provide you with a true insight into the space that you’re about to enter.
Business plans usually look to cover the first 3-5 years of business, detailing all aims and objectives backed by how you’re going to achieve them. “If you’re looking for an investment, or going to a bank a business plan shows that you’re prepared and have fully vetted your business idea” said Peter Hale, founder of Teneric, a company that specialises in providing help and guidance to small businesses and start-ups.
“For example” Peter continues “if you don’t have any financial forecasting which is usually found in a business plan, how will a bank know that you’ll be able to repay the loan?”