A business plan is a key requirement for an entrepreneur because it serves several key functions. Here are a few examples of what a business plan should do for an entrepreneur:
Define and refine the business idea: A business plan helps an entrepreneur to clearly define their business idea, and by researching and writing the plan, it can help them to refine it and ensure that it is viable and sustainable.
Set goals and objectives: A business plan helps an entrepreneur to set specific, measurable, attainable, relevant, and time-bound (SMART) goals and objectives for their business.
Develop a strategy: A business plan helps an entrepreneur to develop a strategy for achieving their goals and objectives, including details on how they will market and sell their products or services, manage finances, and operate the business.
Attract investors and lenders: A business plan can be used to attract investors and lenders by providing them with detailed information on the business and its financial projections.
Monitor progress: A business plan serves as a roadmap for the entrepreneur, and it can be used as a tool to monitor progress, make adjustments as needed, and stay on track towards achieving their goals.
Communicate effectively with stakeholders: A business plan is also a useful tool for communicating effectively with stakeholders such as employees, partners, and suppliers