A wise, old businessman asked his grandson who was venturing out to start a new business, “Son, what do you think is the most important thing you need if you want to climb a mountain?”
The enthusiastic grandson replied, “Equipment, courage, physical strength, a guide and a positive attitude!” Super stuff, indeed.
The old man smiled and said, “I think the most important thing is the ‘mountain’ itself.
To achieve a goal, you need a goal in the first place. To climb a mountain, the best gear, equipment, training and attitude is of no use if you don’t have a goddamn mountain!
The grandson had just got a masterclass in business in a few words! This is a story you can find in the book, “The Habit of Winning” by Prakash Iyer.
Think of your business plan as your goal, as your mountain. Planning is indispensable in achieving success in life and a business plan works the same way for your start-up too. The best talent, processes, business capital won’t be of any help until you don’t know what’s the mountain you’re going to climb!
Here are a few reasons that will surely compel you into writing a business plan for your start-up, if you don’t already have one:
- Test the waters before you dive in-
Entrepreneurs are one super enthusiastic lot of people! They are gung-ho about their idea and believe that that is it. Everything else will fall into place once the journey begins. Now, here’s where you need to give yourself a reality check. Once you spend time in creating your business plan, you might realise that the idea might turn out to be practically unfeasible at a certain point in time. This effort will definitely save you a lot of time and money and make way for some better idea to come in.
- Attract those business angels-
Presenting a combination of a full-proof plan of the idea and your ‘can-do’ attitude will definitely make it easier for an investor to choose you.
An interesting presentation can help you attract their attention but a solid business plan will help to show them that you know where you’re going and how. Submitting a plan will facilitate competitive analysis for the investors and a good one will help you make the cut.
- Appeal to banks and other financial institutions for loans-
Needless to say, start-ups require some good in flow of cash during the early stages before breaking even. Established financial institutions often ask for a detailed plan for the business. Make sure your business looks like a promising one!
- Greater chances of business success-
Writing a business plan is a detailed task and it should take into account some unforeseen circumstances too. This will increase operational efficiency and prepare the business to not get affected by minor turbulences in the future.
- Survival guide during tough times-
Every start-up has its share of early successes and failures. You can always rely and fall back on a well- researched, tested and written business plan during crisis. It will help to steer the business back to the right track because it always answers the ‘why’ you’re doing something. The ‘how’ may change due to dynamic environments but the real reason behind ‘why’ a business does what it does will never change.
Benjamin Franklin rightly said, “by failing to prepare, you are preparing to fail.” So, don’t prepare to fail. If you already have a business plan, it’s always a good time to unlearn and relearn some new ways to make it better. And, if you still don’t have one, find your mountain, put on the best gear and get set to climb it!