Everything in a startup comes from an ideas and that particular idea is well imagined and framed inside your mind but you don’t have two things at the beginning: money and people. In order to get any of them, you have to go and convince people to invest in your business or join your team.
Making a team is something important but the most important thing is getting investors to put money in your business but there is a catch how would you transfer what you have in mind to them? Well the answer is simple, you have to use Business plan. In this article we will take a look at the nature of business plan and we will explain to you what exactly it is.
What is business plan?
If you want to transfer your idea to others then you must be able to speak in their way. If you go to Spain then you should know how to talk Spanish and the other option is to use a common standard language as the intermediate. The same thing goes with business. If you know someone for long then you can explain your idea to them easily and then they will know what you have in your mind but most of the investors are in their own world and you have to go there and explain your mind to them in a way which is a a standard way all over the world and we call it business plan.
Business plan is a detailed map which shows every step in your path from zero to success. It is a written document and has enough explanation in it to make people realize what you have in mind. In a business plan you have to show that your idea is doable and profitable (to some certain level) and then you will earn the trust of investors to get starting money from them.
What kind of content you need in a business plan?
Experts believe that business plan has two essential parts: why and how. In these two simple words you will explain reasons which make people believe in your plan. We will go through them one by one.
Why part can be separated in 3 parts Why this idea? Why we should do it now? And why you are the one to do it? In the why part you have to go and answer questions such as how will this idea make money? How will it get customers? And finally how will this business grow?
In order to explain this to people, you have to identify your services for the right market and then take it to the right investors to get money in order to gather the right team. So basically, a business plan is a strategy guide for your business and you should do it before anything else in you startup life.