Business & Finance

When Should Entrepreneurs Write Business Plans?

The timing of formal business plans is crucial

A company needs a plan, or they will not succeed in even making it beyond the first few months or even a year. A business plan should be in the back of the mind of any entrepreneur that is starting a business, but it does not need to be written down and finalized until they are needed for certain purposes. An entrepreneur like Alexander Djerassi understands there are reasons to have them available and when they are truly needed. Until there is a reason to write one, a person starting a business does not need to have one available on paper.

Funding Considerations

If a person is starting a company, they quickly learn that funding is the hardest part of the process when the bills start piling up. A business plan is necessary to show to independent funding sources, banks, and government agencies to get them to say yes. Having the plan says to them that a company has a path forward and that it is not going to be doing random changes because of being unprepared. A well written one will get funding far faster than an oral presentation like movies that portray them as a last ditch effort constantly.

Employee Peace

Employees want to work for companies that will be there for a while and will have chances to climb the corporate ladder. The modern climate does not allow for companies to remain stagnant, as the workforce is being picky to the detriment of companies. A clear and concise business plan that is available to be seen publicly will give employees a peace of mind that being hired will not lead to them being stuck in lower rung jobs their entire career. A company with a clear plan shows that they are thinking about more than just making money.

Marketing Campaigns

A company that has a clear goal that is stated in a concise method via the business plan will make the initial planning by marketing professionals far easier. A company has a personality that evolves, and the first one is usually understandable by the business plan. It says what the purpose of the company is, and it intends to accomplish this. Understanding this will allow for advertising that blends in the uniqueness of the business with a public campaign to attract the right customers. Marketing just needs to mold it into something easily digested in 30 second broadcast spots.
The initial part of starting up a company does need much in the way of formal documentation, so the business plan may not get written until later. An entrepreneur like Alexander Djerassi can show that it will need to be written and that it needs to be done as professionally as possible. The help that this document will bring has been shown here, but there are a few others that experienced people in business can tell new entrepreneurs. A business plan is more than what is going to be put on paper, but the paper version is important and powerful.