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Startup companies can benefit from business planning

On Behalf of | Feb 12, 2020 | Business Law

People who have ideas and who want to transform them into startup companies in New York should start by writing business plans. Business plans for startups can provide entrepreneurs with roadmaps to help them increase the chances that they will succeed. Startup business plans should address several topics to help inform the entrepreneurs of the directions to take.

Entrepreneurs should first identify the problem that they are trying to solve with their ideas. They should consider what consequences consumers suffer because of the problem. This can help the entrepreneurs quantify the problem and determine whether consumers are likely to switch to what they have to offer. They should also think about the problem’s size, which can help them to determine the potential market size.

The business plan should include considerations of who the direct and indirect competitors are as well as the target buyers. Then, entrepreneurs should look at their proposed solution to the problems that the consumers face and think about how it differs from the solutions offered by their competitors. Based on the hypotheses that the entrepreneurs have arrived at, the entrepreneurs should then create a validation plan to test them. Later, the validation plan can be updated to become a plan for growth. Finally, the entrepreneurs should plan for the key people whom they will need to recruit to bring their plans to life.

Many entrepreneurs with ideas for startup companies skip past the business planning stage. Unfortunately, startups without plans are much likelier to fail. Entrepreneurs might benefit from getting help from experienced business law attorneys. An attorney may provide some guidance about business plan creation while advising their clients about the applicable laws and regulations. This can help clients to avoid making potentially costly mistakes and unintended violations of the laws and regulations that govern their companies.