In the previous blog, I talked about the second stage of the business development process. In this blog, I’m going to take the discussion further and talk about the third phase of the process – writing a formal business plan.
While an early-stage financial analysis may be exasperating at this point, it will help you a great deal. The real question that needs to be answered during this stage is, which of these assumptions you need to validate with more detailed analysis.
You’ll get plenty of time to pursue your long-term objectives, so you need to focus on the most critical issues at this stage. Put simply, you’re seeking useful insight during this stage and not a single answer from this critical analysis. Once you’ve successfully completed the second phase of the business, you can be confident that your business concept is promising.
Phase III – Writing a Business Plan
While you can just cold-start your business, it would be a better idea if you formally write down a business plan that states your mission, vision, your business objectives and where you would like to see it let’s say in three years or 5 years down the road.
A formal business plan will help you in a number of ways. It will not only help you refine your business idea, it will also help you see if the concept has the potential to be successful before you make an investment. Even if you are willing to take the risk with your money, most lenders would demand a business plan before making an investment in your business.
I’ll talk more about the constituents of an effective business plan in the next blog of the series. Don’t forget to follow up!
Need to catch up? Here are the links to my previous post in the serious: