BUSINESS PLAN- A well-written business plan is a crucial tool because it gives entrepreneurs the ability to lay out their goals and track their progress as their business begins to grow.It acts as a blueprint of business goals. Formulating a business plan should be the first thing done when starting a new business.

A good business idea is not enough. Even brilliant business ideas can be totally useless if you cannot formulate and implement a strategic plan[business plan] to make your business idea work.Business plan forces entrepreneurs into disciplined thinking.

IMPORTANCE OF BUSINESS PLANS FOR NEW VENTURES----

Building a business plan allows you to determine the answer to some of the most critical business decisions ahead of time. Creating a robust business plan is a forcing function. Points written below will highlight to you that why is it important to have business plans and why its worth spending time to prepare an exceptional business plan.

1. TO RAISE FINANCE FOR VENTURE[ BUSINESS]

It is something which helps you to gather fund for your business.
Potential investors want a written business plan before they give you money. A mere description of your business concept is not enough. Business plans are also important for attracting investors so they can determine if your business in on the right path and worth putting money into.

2. TO MAKE REASONABLE DECISIONS

While business plans have many purposes, the primary importance of a business plan is that they help business owners make better decisions.
As an entrepreneur, having a business plan helps you to define and focus on your business ideas and business strategies. Entrepreneurs not only concentrate on financial matters, but also on management issues, human source planning, technology and creating value for their customers.

3. TO HELP YOU IDENTIFY POTENTIAL WEAKNESSES

Having a business plan helps you to identify potential pitfalls[ loopholes] in your idea. You can also share the plan with others who can give you their opinions and advice. Identify experts and professionals who are at a position to give you advice.

4. TO HELP YOU COMMUNICATE YOUR IDEAS TO STAKEHOLDERS

A business plan is a communication tool that you can use to secure investment capital from financial institutions or lenders. It can also be used to convince people to work for your enterprise, to secure credit from suppliers, and to attract potential customers.

5. TO PROVE THE SUSTAINABILITY OF BUSINESS.

Many businesses are created out of passion, and while passion can be a great motivator, it’s not a great proof point. Planning out exactly how you’re going to turn that vision into a successful business is perhaps the most important step between concept and reality. Business plans can help you confirm that your grand idea makes sound business sense.

6. TO REDUCE RISK

Entrepreneurship is a risky business, but that risk becomes significantly more manageable once tested against a well-crafted business plan. Drawing up revenue and expense projections, devising logistics and operational plans, and understanding the market and competitive landscape can all help reduce the risk factor from an inherently precarious way to make a living.

Creating a business plan involves a lot of thought. You need to consider what you want to do, and use that as a starting point. It doesn't need to be complicated. At its core, your plan should identify where you are now, where you want your business to go, and how you will get there.

Why do you think that writing a business plan is so important for new ventures? Would the entrepreneur be better off spending more time selling his or her product rather than investing so much time in writing a business plan?

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