John Mullins, associate professor at London Business School and author of “The New Business Road Test: What Entrepreneurs and Investors Should Do Before Launching a Lean Start-up, 5th ed." (FT Publishing, 2017). talk with prospective customers, suppliers and others in your industry." Even after you embark on your business endeavour, you want to ensure you're attracting and retaining customers before asking for capital, Mullins added.
"Raising money too soon is a distraction, and has big downsides …
"Research is one of the big value-adds of writing a business plan," said Joseph Ferriolo, director of Wise Business Plans.
"Research forces companies to learn what they can expect to make and what the industry trends are." Mullins advises asking yourself how large and attractive your market is, how quickly it's growing, and if there are any trends that will make it grow in the future.
Create an executive summary describing the industry you wish to succeed in, and how and why you intend on doing so.
Then, list your company's strengths and weaknesses, opportunities for growth, and any threats that might hinder the achievement of those goals.Klein stated that the document doesn't need pages and pages of text; rather, it can include images, infographics and specifics "so that it can be used as a point of reference at any point in time to ensure that the business is on the right path and is meeting its goals." Your plan is there for a reason.Don't be afraid to refer to it as much as possible — think of it as checking the map when you've made a wrong turn."A business plan is absolutely vital as it navigates your business on the road to success," said Joel Klein, founder and producer of Biz Tank and the B-Tank platforms."Only by setting a plan that outlines where you want to go, along with a plan of action on how you are going to get there, will a business owner know if they are heading in the right direction and how far they are from their final destination." Your business plan should guide you throughout the startup process, available as help for any problem that may arise.Preparing a business plan is like outlining an itinerary for a road trip.You'll want to have a clear, objective map that you can follow step by step while developing your business.While writing a business plan can be time consuming, it doesn't have to be overly complicated.There are many resources and templates online that allow you to develop a good business plan.not the least of which is eventually losing control," he said.As with any business project, research is critical to a solid business plan.