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Pre-business plan stage

What you need to know before writing a business plan

Before embarking on writing a business plan, it is important to have a good understanding of what is involved.

Writing a business plan is an essential part of starting a new business or expanding an existing one. It is a document that outlines your goals, strategies, and tactics for achieving those goals. Before you start writing your business plan, there are some things you should know to ensure that you create a document that will be useful to you and potential investors.

Conduct market research: Before you start writing your business plan, you should conduct market research to understand the competitive landscape and customer needs. This will help you identify opportunities and challenges that your business may face and enable you to develop strategies to overcome them.

Identify your target audience: Your business plan should be tailored to your target audience. If you are writing your plan for potential investors, you will need to emphasize the financial aspects of your business, such as revenue projections and cash flow analysis. If you are writing your plan for internal use, you may focus more on operational details and specific goals.

Create a realistic financial plan: Your financial plan should be realistic and based on accurate data. This includes revenue projections, cost estimates, and cash flow analysis. You should also consider potential risks and how you will address them.

Keep it concise and focused: Your business plan should be concise and focused. It should provide a clear and compelling overview of your business and its potential for success. Avoid unnecessary details and jargon that may confuse your readers.

Update it regularly: Your business plan should be a living document that is updated regularly. This will help you track your progress and make necessary adjustments to your strategy and tactics.

In summary, writing a business plan requires careful planning and research. It should be tailored to your target audience, realistic, concise, and focused. Remember to update it regularly to ensure that it remains relevant and useful.

Academic references:

Baron, R. A. (2007). Opportunity recognition as pattern recognition: How entrepreneurs “connect the dots” to identify new business opportunities. Academy of Management Perspectives, 21(1), 104-119.

Kuratko, D. F. (2009). Entrepreneurship: Theory, process, and practice. Cengage Learning.

Mullins, J. W., & Komisar, R. (2019). Getting to plan B: Breaking through to a better business model. Harvard Business Press.

Schaper, M. T., Volery, T., Weber, P. C., & Gibson, B. (2014). Entrepreneurship and small business. John Wiley & Sons.

Timmons, J. A., & Spinelli, S. (2012). New venture creation: Entrepreneurship for the 21st century. McGraw-Hill.

Links to academic references:


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