Why creating a Business Plan is Important?

Business Plan

I am writing this blog post for my students who either study Business or interested in doing Business. If my post will be helpful for others too, I will be happy.

When you do things without planning, it can be disastrous. Suppose, you are going to organize a party and you are not making any plan about:

How many people will be there?

How many plates you have to order?

How many Tables and Chairs you need?

and lot of stuff like this.

Now, if you will not make any plan for these things, you will eventually have:

more guests standing in the party and have no chairs to sit.

guests without plates of snacks.

and so on.

And you will be awkward in front of guests when you have to go to buy something during party time.

The same thing happens with a business.

when you start a business, you need to make a plan i.e. Business Plan to start your business.

Business Plan helps you in estimating, calculating everything you need before, during, and after the starting of the Business.

Let me give you an idea, what could be in the business plan.

Suppose you want to start a t-shirt printing business. Your Business Plan will have a detail of

From where you will get plain t-shirts to print?

What will be the buying cost of those t-shirts?

What will be the cost of your printing machine or if you are going to print by DIY method then what will be the total cost going to occur in buying paper, iron, printer and electricity cost etc.?

Where you are going to sell your products?

If you are going to sell through a store, what will be the monthly rental?

If you are going to sell online, what is the amount you are going to spend on online ads, SEO, etc.?

From where you will get starting funds to start your Business?

These questions will have the answers in the Business Plan you create.

Street Vendors also have the answers to the things which are part of the business plan but they don’t write in an organized way.

Apart from that, Venture capitalists, Investors who will provide you seed funding to start your business or funding to keep your business running, they always want to see your Business Plan in order to invest in your Business.

We will talk about the Venture Capitalist later.

There are a lot of things which are part of the Business Plan. In the next post, we will have an overview of the contents of the Business Plan.

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