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If you're about to start your business, you have probably heard about business plans, and might be wondering: do I need a business plan?
First things first, what is a business plan? To keep it simple, a business plan is a document that presents the business opportunity that your company is trying to seize. In this document, you'll explain how you intend to take action to make the most out of this opportunity and estimate its potential profitability.
Ok, now let's take a look at why you need a business plan.
#1: Do I need a business plan to serve as a road map?
The business plan is the document that will go over the strategic, commercial and financial objectives of your project for the next 3 years.
3 years can seem like a long way away when creating your business, however, it's important to account for this time. There's a good chance your project will evolve in a different direction than what you had in mind at the start - as you will need to adapt to market trends, competitors and consumer needs, embrace yourself for your business to be constantly evolving.
Your business plan, therefore, acts as a road map for the whole team. You will be able to have a document to come back to and reflect, making sure you've accomplished what you intended to, or understand why you didn't, and define new goals for your company.