In Guy Kawasaki’s Art of the Start, Kawasaki says for most entrepreneurs, the business plan document is one of the least important factors in raising money. However, writing a business plan for the right reasons will reap benefits for and beyond investment.
Reasons why you should write a business plan:
- You will need it during due diligence when seeking investment. It is necessary to be on file.
- Writing one will bring the founding team together, creating a stronger and more cohesive team.
- It may point out who you shouldn’t be working with
- Writing helps point out cracks in the foundation
- Whatever gets lots in the excitement of launching can be caught in the writing stage i.e. a customer service policy
- Writing a plan will help find the holes in a founding team. If there is a key element with no one qualified to execute, you know what you’ll need to hire for
In summary, writing is a journey to discovery both in life and in business. When you sit down to flesh out and structure your ideas, you will find the obstacles that will force you to be more innovative in order to overcome.
A business plan can make the difference between a good business and a great business just through the act of writing one.