Marg Kronfeld – Why Writing a Business Plan Is Crucial

Marg Kronfeld is an experienced businesswoman and company director who has been active in the field for decades. When it comes to business development and growth, having a plan is extremely important. If you would have to choose one word to describe a business plan, that word would probably have to be roadmap. Your business plan is your roadmap and it influences the direction of your venture, and whether it will reach its goals, or go out of business within the first year like so many startups do.

Business Summary

Your business summary is basically a snapshot of your venture. It includes the company’s activity and its goals, both in the short and long terms. It should be clear and concise.

Describe Your Company

The description of your company includes basic information about its profile, the market it serves, and the characteristics that make it stand out from competitors. If you are looking for investors, it is really crucial to have a great company description. Without one, it will be very difficult to attract a serious investor.

Do Your Market Research

Doing proper market research is one of the most important aspects of business development. Without it, you are just shooting in the dark. There are hundreds, if not thousands of people each year who think they’ve come up with an excellent idea, only to find out later that somebody else had the same idea before you and has actually already implemented it.

Quality market research does two things for you. First, it gives you insight about the business industry itself, which is already an important factor. Second, it reveals your potential competitors. In the business world, competitor activity is a crucial factor in terms of failure or success. Having several competitors from the get go is an extremely tough situation to be in, and without proper market research, you cannot hope to develop a plan that would give you competitive advantage.

Management Aspects

Figure out what is the best organizational structure for your company. Once you do that, the next step is to actually figure out what kind of management structure you want. Different companies have varying organization structures and hierarchy, and each comes with its own advantages and disadvantages.

Financial Projections

If you have to find investors, you cannot avoid putting together a financial projection. Without it, you have virtually no chance to find a serious investor. The rule of thumb is to be realistic as investors are almost always professionals who have significant knowledge about the business world. In addition, getting funding with unrealistic projections is a lose-lose situation for both sides.

Marg Kronfeld possesses a deep understanding of professional ventures, and has considerable experience in business development.

Sources:

https://www.sba.gov/starting-business/write-your-business-plan

http://www.inc.com/guides/business-plan-financial-section.html

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