The majority of business owners understand that running a business without having a plan is like riding a motorbike up an incline while blindfolded. According to various studies, over half of businesses do not have a formal plan in place.

The process of creating a business plan requires time and effort, and it is important to consider the needs of your audience when writing it (for example in the case of seeking investors then your plan will need more care than a plan that you’re only check using as a guideline for yourself). Although no plan can predict the future, a well-written plan helps you avoid common pitfalls, makes it easier to capitalize on opportunities, and provides a basis for success, even if you do not follow it exactly.

A good business plan begins by providing a brief overview of your company, including the reason you’re starting the company and how it can fulfill a need in the market. It should include any intellectual property that provides your company with a competitive advantage. This section should also include an objective statement as well as a list of most important team members’ roles and responsibilities and the business’s goals.

The next section will explain the services and products you’ll offer, your pricing strategy, and the way you plan to deliver these. You should include a detailed financial analysis in this section that details the cost of starting, how you plan to generate revenue, as well as the timeframe you anticipate to reach profitability.