Which is the importance of a Business Plan

Which is the importance of a Business Plan

Having a great idea and not having a Business Plan is like buying a car and not knowing how to drive it; A business plan is the key not only to effectively increase the chances of success of a business, but also to access financing and support to start it, in this way we must consider the importance of a business plan, as a tool that allows leveraging the chances of success of a project to transform it into a profitable business.

A business plan allows ventures to have the necessary resources to carry out in an organized manner develop projects with a greater probability of success, regardless of whether or not they are related to new technologies. In the end, investors invest in innovation, and if the idea is innovative in itself, it does not have to be linked to the technological ecosystem. The problem that most Startups encounter when presenting their projects to investors is presentation, structure, approach, language and content.

Thus, a business plan becomes a key element of strategic value for the organization, beyond that it is also a presentation in itself of the organization’s strategy, structure, goals and objectives, exposing the key elements that allow convert an idea that is in itself an ethereal element into a structured and profitable company, for this purpose the resources that the company has and the way in which they interact with each other and with the environment are considered. In order to meet this objective then, the document must be prepared containing a series of mandatory elements, which contemplate the most relevant aspects of the business, that is, market aspects, financial, administrative and strategic aspects, raised in such a way that they do not leave any place doubts about our business project. Additionally, it must be presented in an orderly, concise and certainly strategic manner; becoming a novel that contains a presentation with middle and end, which an investor or financial institution must be able to digest without the slightest inconvenience. Of course, the elaboration must also be considered in the same “language” as our recipient. That is to say, use tools, technicalities and usual resources of investors and financial institutions. This is nothing more than adapting the message to the end user to facilitate their understanding and achieve a better reception on their part.

Knowing how to prepare a good business plan means the difference between getting the key to financing a project, or suffocating it even before its birth.