The reason I didn’t is because I consider the business plan a tool for you to use, whether if you are investing your own funds or funds from family and friends, seeking a loan, applying for a business plan competition or raising equity financing, the plan is equally important. Although fewer than 40% of the 500 fastest growing firms wrote a business plan, according to the State of Entrepreneurship Address 2011 at the Kauffman Foundation, I still encourage you to write one.
How long does it take to write a business plan?
When you take on the task of writing the business plan, you will quickly realize that it is daunting. I can’t tell you how many times I went over a business plan outline with a client and he/she will tell me that it will be done in a week. It never happened. How long it takes to write the plan varies according to the complexity of the industry and/or your idea, and how dedicated you are to completing it. I suggest that once you have a business idea, you start working on the business plan immediately. It will help you to launch your business with full knowledge of the industry and market.
How to write a business plan?
I’m a strong advocate for you to write your own business plan. I suggest that you choose an outline to follow, but know that you can be flexible and adapt the outline according to your business. The Small Business Administration has several guides to help you write your plan, you can access them here: SBA.gov I have always discouraged my clients from using software to write their plans, it just seems like the information is not always real or relevant, as most programs add information that supposedly pertains to every business. I recommend that you take the time to do the research and write your own plan!
Will you be required to write a business plan in school?
If your MBA major is in Entrepreneurship, most likely you will be required to write at least one business plan. Even if you are not sure what type of business you are starting, I suggest that you dedicate the energy and time required to write a complete business plan. You can choose to write about something that you are passionate about in the meantime, even if it’s just a hobby. It will help you with the knowledge, resources and experience to write a well-written business plan and the second business plan shall be easier to write.
Why not to write a business plan?
I do not have an answer, but I’m open to reading your arguments against writing one. Or feel free to post your reasons for writing a business plan.
Why is a business plan essential?
A well written and well researched business plan helps you to plan for success; to review and understand all aspects of your business including vision, mission and goals, marketing, management, operations, industry, finances; and to understand the lifestyle involved in running that particular business. You may have noticed that I did not mention raising capital.
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