Some Colorado entrepreneurs who have startup companies either do not have business plans or think that they do not need them. While the lean startup idea might be popular, startups at their roots are still businesses, and they are more likely to succeed when they have business plans in place.
Business plans do not have to be long, wooden and complicated. Instead, starting with one that is 10 pages long or less is smart. This can help entrepreneurs to keep both their plans and their businesses focused. A good business plan should be a living document to which entrepreneurs refer at least on a monthly basis. It should be changed or modified as needed with the entire team giving input into what is working and what is not.
Without a business plan, startups may be unfocused and make critical business errors. The initial plan should include information about the product that is being offered and what it does. It should also detail how the product will be placed on the market and what the company’s revenue model is. The goals for the startup as well as the milestones on the way to reaching them should be outlined. Entrepreneurs should also plan the methodology that will be used to determine if it has failed, as well as information about potential customers, the target market and the company’s financial needs
.Business plans are still expected by potential investors for startups. A startup company that will need venture capital will likely be required to write a business plan before funding will be approved. Entrepreneurs may want to consult with an attorney for advice on what prospective investors are likely to be looking for.