Key Harrington Barnes, PC

A business plan is a crucial part of any startup

While it may not be the most enjoyable part of starting a new venture, Texas entrepreneurs can greatly benefit from putting a business plan together. In addition to being a crucial document when seeking outside financing, a business plan is important for internal purposes as well. It turns employees into team members who all work together to make the business a success. It also gives them an idea about how they are contributing to the company, and whether they are winning and meeting the company's goals or not.

To start a business plan, the owner could simply write several pages clearly outlining the company's goals, its products or services, it's strategy for marketing those products or services to target customers, and its projected revenues and profit over the next few years. The plan should also include how the company will obtain external funding to meet possible financial needs, and an exit strategy if it fails.

The reason many business owners lack a business plan is they might think it has to include 50 pages of detailed information. On the contrary, however, a business plan that is concise and no more than 10 pages long shows that the owner fully understands the mechanics of the company. It is also a good idea for the owner to involve the founding team when creating the plan, so different ideas can be gathered. Then, it should be regularly reviewed and updated.

A business plan acts like a road map, helping everyone to keep on track towards success. Prospective entrepreneurs may want to get the advice of an attorney who has experience in counseling start-up companies before the document is shown to outside parties, however.

Source: Startup Smart, "Yes, your startup still needs a business plan", Jon Westenberg, July 11, 2016

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