What are the 3 main purposes of a Business Plan? The 3 most important purposes of a business plan are 1) to create an effective strategy for growth, 2) to determine your future financial needs, and 3) to attract investors (including angel investors and VC funding) and lenders.
A few questions that a business plan should answer include: What is your business idea? Who are your customers? How will you connect with potential customers? Who are your competitors? How will you carry out the basic functions of your business? What is your long-term goal for your business? How will you profit financially?
Lenders and investors are constantly presented with new business proposals. If you provide all the required information in a consistent format, then lenders and investors can make an efficient and fair analysis of the viability of your business ideas.
By preparing a comprehensive business plan you send a message to your lenders and investors that you have already made an objective assessment of your business ideas and that you are serious about your business plan.
Here are two resources to create personalized business plans for free:
For other business tips and tricks (including advice on creating a business plan check out our video with Derek Stephens. He offers advice for small business owners and shares how the Mississippi Small Business Development Development center can help you! CLICK HERE to watch Derek Stephens’s video.