If start-up financing is required, you must have an investor-ready business plan to show potential investors that demonstrates how the proposed business will be profitable.
In a nutshell, then, the answer to the question, What is a business plan?
In addition, going through the process of creating a business plan improves entrepreneurial skills.
If you have an idea for starting a new venture, a business plan can help you determine if your business idea is viable.
For anyone starting a business, it's a vital first step.
Every entrepreneur has heard stories of businesses that were started with little more than a few post-it notes and some back-of-the-envelope calculations.
There's no point to starting a business if there is little or no chance that the business will be profitable - a business plan helps to figure out what your new business's chances of success are.
And in many cases, people starting new businesses don't have the money they need to start the business they want to start.
Business Model The business model you choose will be a strong determining point of the future the success of your business.
You need to take into consideration the source of revenue, the major costs incurred in generating revenue, the profitability of the business, the investment required to get the business up and running and the critical success factors for the model to work.6.