The Importance Of A Startup Business Plan

VantagePoint Capital Partners, a large venture capital fund in the San Francisco area. My focus as a venture capitalist is on investing in Internet and Digital Media companies. I am the author of several books on startups and entrepreneurship. I am also the founder or co-founder of several Internet companies, having sold them The Importance Of A Startup Business Plan to NBC Interactive, LexisNexis and D&B. I am the co-author of Poker for Dummies and a Wall Street Journal bestselling book on small businesses. I was also a corporate partner at the law firm of Orrick, Herrington & Sutcliffe, with experience in startups, mergers and acquisitions, strategic alliances, and venture capital.

The Importance Of A Startup Business Plan

Go over this section with your accountant to make sure everything is worded correctly and that your numbers make sense. Do you have plans to add new products or services as your business grows?

Develop startup partnerships and resources

Goals, tracking your progress toward those goals, and making changes to your business as you learn more about your customers. It’s only through having the best startup strategy, and executing it to perfection, that a startup is able to compete effectively within its niche.

What is the purpose of a business plan?

A business plan has four main purposes:Tests the feasibility and model of your business ideaAttracts investorsSets a plan for growth Identifies capital needs

Internal consistency of facts and figures is just as crucial with a working plan as with one aimed at outsiders. You don’t have to be as careful, however, about such things as typos in the text, perfectly conforming to business style, being consistent with date formats and so on. This document is like an old pair of khakis you wear into the office on Saturdays or that one ancient delivery truck that never seems to break down. As with a miniplan, you can probably afford a somewhat higher degree of candor and informality when preparing a working plan.

Formal or External Business Plan

Even if you have a good business plan, your company can still fail, especially if you do not stick to the plan! Having strong leadership with focus on the plan is always a good strategy. Even when following the plan, if you had poor assumptions going into your projections, you can be caught with cash flow shortages and out of control budgets. Without flexibility built in to your business plan, you may be unable to pivot to a new course as needed. A business plan is a fundamental document that any new business should have in place prior to beginning operations.

The Importance Of A Startup Business Plan