It is the era of social media and of course, an era that has made it easier for everyone to start a business. Unlike Bill Gates who started Microsoft in a Garage or Zuckerberg who started Facebook in a dormitory, quite a number of businesses are springing forth on social platforms like Instagram, Facebook, Twitter and what have you.
Published May 24th. 2021
Those
days, dropouts or employees-turned-entrepreneurs, like Jeffrey Preston Bezos,
the founder of Amazon, needed laptops, internet connectivity and websites to
start their businesses. These days, these hippie generation entrepreneurs only
need a smart phone, internet connectivity and an account on any social platform
to birth new businesses. Not a bad idea for running a business without an
office. But unfortunately, many of these new age businesses may die before their
third year. Why you may ask? It is because a lot of them are setting up businesses
without definite plan.
Just
what is a plan? According to Google, which was a PHD research project by Larry
Page and Sergey Brin, a plan is a detailed proposal for doing or achieving
something. A plan is a blue print; a written document that highlights how to
move from point A to B. In business, it is not just some sentences scribbled on
a piece of paper, journal or diary. Neither is it an architectural drawing that
depicts a proposed building. It is called business plan.
The
likes of Richard Branson, Bill Gates, Steve Jobs and Mark Zuckerberg may have
launched their businesses without a comprehensive business plan, but that is
not an endorsement for you to start yours without one. Back then, most of them
were teenagers who were exploring and not really cut out for business. If you
are cut out for business and not just exploring the new age media, then you
need a detailed business plan.
A
business plan is as important as the business itself. Although I am not from
that school of thought that will tell you to fold your arms and do nothing while
working on a business plan. I believe that you should launch out if you can.
However, you need to have a business plan to guide you on your journey to your
business haven.
A
business plan is like a road map needed by the entrepreneur him or herself to
start, manage and grow the business. It is not just a document you need to
raise money. Wipe that thought off your mind first. Before you start thinking
of how to approach investors and raise fund for your business with your yet to
be written business plan, you must understand that you need it as your road map
to help you find the direction of your business.
A
business plan is more like a compass that tells the direction of your business.
As the entrepreneur, you need one to help you understand the different areas of
your business. Like the industry, market survey, target audience, marketing
plan, required management structure, and financial analysis. You need a
business plan to help you see the big picture of your business in facts and
figures.
Yes,
in business you don’t just assume your business is just another lucrative
venture; we create assumption in business based on facts and figures. And these
facts and figures are part of what make a business. For example, you don’t
assume there are five million people in a particular geographical location who
need your product. Rather, your sales projection should be based on your market
research. And that is an essential part of a business plan.
Although
we have great entrepreneurs who started their businesses without a business
plan. They were ready to learn and relearn on the game and make mistakes that
weren’t necessary, but costly. With a comprehensive business plan, although it
is not a guarantee for business success, your mistakes will be minimal. So,
before you continue on your business journey, you need a business plan.
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