Seven Things You Need to Know About Business Planning

1. The process of business planning is intended to give you a much deeper understanding of your business model and force you to clarify your own abilities, resources and expectations.

2. A business plan is essential both to obtain funding, and also to be sure the funds are used properly after they are obtained. Lenders need to be confident that your budget is adequate to cover start-up and ongoing manufacturing and overhead costs as well as for the marketing you will need to attain your goals.

3.Your business plan is like a resume for a business. It isn’t enough by itself to win funding. It must first generate the interest needed to enable you to set up meetings with funding sources.

4.You may not need all the documentation prepared in the business planning process for obtaining funds. They are needed, however, to be sure that you have a viable business model, properly thought through.

5. A business plan is not a turnkey model for how to run a business. It is only a starting point to set the stage from which competent individuals will need to create detailed tactical plans such as operating, marketing, and financial plans.

6. Your business plan may need to be revised as situations change (even before your business is opened), and it should also be revised to fit the needs and expectations of lenders or investors.

7. Many people should be involved in the preparation of your business plan. In addition to the principals of your company, you will need outside consultants, your attorney, and your account to review your plan. You should involve your accountant in developing and maintaining your spreadsheets and reviewing them for viability. And your attorney will need to draft confidentiality language or deal notes if venture capital funding is being considered.