Writing a Business Plan

August 2, 2006 at 1:51 pm Leave a comment

Writing a business plan is difficult, time consuming, tedious, but completely necessary.

I often get asked why I felt the need to write a business plan if I already had funding. The answer is that the process itself is such a helpful exercise in channeling your thought process. You might have a fantastic idea, the market might be clearly huge, and the margins might be intuitively enormous, but if you don’t put it all into paper you can easily miss potential pitfalls, roadblocks or other such things. Most of the times, the obstacles can easily be prevented if you are aware of them.

Secondly, by writing a business plan you assure yourself that you will think of everything and not miss opportunities.

Thirdly, a business plan gives you an easy to distribute platform for feedback. As soon as I had written ours I sent it off to our board of advisors. I was fortunate enough to have some incredible people, with much more experience than I have, who gave me incredible ideas.

Finally, and most importantly, a business plan lets you define a strategy. You might think you have one, but until you test it from the vantage point of marketing, financing, business development, and the competition, it really is not a strategy, but a hopeful path to your goal.

One final piece of advice: If you are planning to write a business plan, make sure to co-author it, because having someone to challenge every idea and word will lead to some great conversations and a much more solid strategy.

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Entry filed under: Start-up.

Incorporating: The First Real Decision The Budget

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About

Exactly one year ago I set off on the most exciting journey of my life; I started Emerging Demographics Inc (the parent company of HireWorkers.com).

Along the way I was selected as one of the top 20 young entrepreneurs by BusinessWeek.com and the 21st coolest young entrepreneur by Inc. magazine. I have also appeared in ABC7, Telemundo, NPR, and been quoted in StaffingIndustry.com, WorkforceManagment.com, Entrepreneur Magazine, and various other publications.

Over the next few months I will recount some of the stories and lessons learned from building, developing and creating a business from scratch.

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