The Importance of a Business Plan
A business plan is of course crucial for any business but especially so for the often fast-moving world of startups. In this video, Wil Schroter, CEO & Founder of Virtucon Ventures, discusses the importance of planning.
Transcribed article based on the video above.
The importance of a business plan isn’t about the plan itself, it’s not the document, you’re not focused on writing a fifty-page essay, your focused on the business plan, you’re focused on, who in the company understands each side of the business plan and how do they execute that? So you’re looking at the marketing plan and who’s thinking about marketing and how as a company are you aligning your goals toward that?
You’re thinking about the financial model, who in the company understands all the finances of the business? How will you raise capital? Where will you need capital? What will it take to get you to a break-even point? Forcing all of these discussions is all part of the business planning process, it is what a business plan is about. It’s also about aligning the goals of the company across all of the stakeholders, so that everyone can agree, early in the formation of a company, where the company is trying to go.
In many cases the business plan itself is an exercise that everyone can understand, contribute to and form the same alliance with.
Wil Schroter is the founder and CEO of Bizplan. You can read more of his posts here on Docstoc or check out his blog and business plan software at bizplan.com.