An important step in securing capital is having a well written business plan that provides a detailed description of the products and services the company will offer
3 Jan, 2018FORBES.COM
With the promise of a New Year often comes the inspiration for leaving an unsatisfying job. Many people will start job hunting immediately. Others will wait until they receive their 2017 bonuses. Among them will be entrepreneurial minded individuals who use their bonus for starting a new business.
An important step in securing capital is having a well written business plan that provides a detailed description of the products and services the company will offer, who will operate it, the target market and competitive landscape in the local area, and its differentiation and advantages that will lead to success.
Since the business plan ultimately is a tool for securing financing, it should include an estimate of startup costs. Entrepreneurs who are starting a venture in an industry with which they have experience will likely have an easier time estimating costs than those who are trying something entirely new. Finding a partner or a mentor with experience will be very helpful in making realistic cost estimates.
Above all, the business plan is a tool that helps entrepreneurs convince potential lenders that the venture has a strong chance of being profitable.
Here is what a winning business plan should include:
With the economy showing signs of strength, aspiring entrepreneurs have many funding options among banks, institutional investors, microlenders and others. No matter what the source, having a well written business plan is an important first step for securing the capital needed to launch a new business in 2018.
This article was first published by Rohit Arora on Forbes