Business planning is a part of a multi-step commercialization strategy for a start-up. EntreDot places it within the Evaluation (4th) stage of a Six Steps to Success process. The precursors are Ideation, Conceptualization, and Creation. The follow-ups are Preparation and Commercialization. Our team agrees that planning is important, but only after hundreds of questions have been asked and sufficiently answered and not as an exercise unto itself (as some courses for entrepreneurs would postulate.) Add to planning mentoring and education and the entrepreneur has a much better chance to reach the five year mark!
One of the most vital (yet often dismissed) building blocks of a successful business is planning. The market is rife with examples of businesses failing from a lack of adequate planning and prelaunch preparation.
The planning process becomes even more paramount if you’re raising capital or taking on significant risk (such as bootstrapping a venture yourself or leaving a full-time job). Planning is vital, and here’s why:
1. To avoid mistakes: Planning helps ensure you’re going down the right path. Ask yourself these questions: Do you have enough capital? Do you have employees and partners with the right skills? What is a realistic time frame for when you will be able to sell your product or service and generate revenue? Addressing these issues in the early stages will save you precious time and money.
2. To make sure everyone’s heading in the same direction: You’re probably not building a company…
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