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The importance of a business plan

On Behalf of | Mar 9, 2020 | Business Law

Entrepreneurs in New York and throughout the country are encouraged to create a business plan as part of the business formation process. The plan can be as general or focused as a founder wants it to be, and there is no requirement that it be finished by the time the company begins operations. However, it is important to consider key questions such as who the company’s target customers are, what the competition is and how it obtains market share.

By contemplating these and other topics, an entrepreneur can get a better sense of whether it is a good idea to see the business through. For example, while creating the plan, a prospective business owner may discover that it will cost more than imagined to pay for supplies. An entrepreneur may also discover that the brand lacks a quality marketing campaign or that it will be harder to find funding.

Of course, a written plan can help an individual start thinking of ways to overcome those problems. Anyone who is seeking seed or other types of capital for his or her company will need to have a document to show to investors. Ideally, any plan shown to investors will detail exactly how the company will make money and how long it will take to see a return on their capital.

Those who are looking to start a company may want the assistance of a business law professional. An attorney may be able to help create a business plan, file corporate documents with the state or assist with other administrative tasks. An attorney may also be helpful in resolving any disputes that arise before or after the organization is formed. This may help a business owner obtain a favorable outcome in a timely and affordable manner.