By Fernando Berrocal

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A startup business plan is an important document for any kind of business. This document mainly describes your concepts and plans for beginning, running, and ultimately closing out your new business as an entrepreneur. Any entrepreneurial activity may benefit greatly from having a strong business strategy in advance. A solid business plan will help you at every step of the way, from launching to scaling your startup business. Your business plan will serve as an ultimate guide for how to set up, manage, and expand your new business beyond its limits. 

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A business plan’s main objective is to help you consider your organization's essential main business components. It spells out everything relevant to your past, current, an ongoing success, including its main objectives, the resources currently available to you (labor, capital, time, etc.), and its primary ambitions. Additionally, it outlines how to sell to its main stakeholders (investors, clients, etc.), and the significant goals you hope to accomplish as a developing business. Some business owners believe that they won't be able to launch and grow their organization without a solid business plan previously established. Bear in mind, however, that this type of plan might occasionally be your biggest adversary if not done correctly or at the perfect time. We shall discuss primary causes of failure–and how to be more flexible while keeping your business afloat–in the following points.

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• A business plan requires time and effort to get built.  You will better understand that common business phrase, "Time is money", in a startup development context. Spending too much time on a business plan might prevent you from getting those crucial profits. So, according to Forbes magazine, the longer you prepare for a business, the more time it will be out of the targeted market. You could fall behind the competition (especially if the business is looking to be part of a developing market) and pass on a great business opportunity by the time you have completed a formal business plan. You could have a brilliant solution for an important current issue, but by the time you've created the ideal business plan for it, the market might have moved on to the ideal alternative setup. Therefore, make the most use of your time available.  Always keep an eye on what the competition is doing.

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• Business plans don't always contribute to business financing.  Every business owner normally has raised the necessary capital to launch a business at the top of their priority list regardless of its size and/or experience. Writing a business plan to identify your funding sources won't always be successful in acquiring the money you require. They want to invest in a business that is up and operating, according to the expertise of online marketing guru Neil Patel, who states the following. "They want to see more than just a great number of pieces of paper. As a startup entrepreneur, you must prioritize the generation of money to get their main attention."

If you send a business plan to any regular startup investor, they will (likely) quickly scan through it and directly move on to the profit and loss statement (P&L) which is typically placed at the end of the document. So, all the previous work done for the rest of the document is a waste of time, energy, and money.

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• Business plans impose limitations on your endeavors.  Even the strongest business strategies might hinder your company's overall success. They provide you with an explanation or a justification for delaying action, blinding you to potential business possibilities in the process. They prevent you from thinking creatively and decrease your propensity to act in other areas. Startups that apply their ingenuity, adapt, and change as they travel the challenging route of startup business frequently end up being the most successful ones.

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• Business plans enable quick decision-making. Owning a business requires you to make choices rapidly since it is an ever-evolving entity. If everything is done according to your business strategy, you can subsequently realize that it isn't functioning. According to startup business magazine Inc., "Startups and early-stage businesses nearly invariably shift course as the team becomes more aware of what's feasible and what clients want. Your business strategy is meaningless, at best, and a hindrance at worst, the moment you implement a pivot".

If you try to remain current on just one, you'll have to return to the document frequently to make changes to reflect the new path you take. Once more, this costs your business significant time and money.

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Check Your Progress

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A business can only be deemed successful after being put to the test in different scenarios. It is not possible to predict whether or not your concept will eventually succeed in these crowded marketplaces. A business plan is an antiquated method of starting a business since it cannot foresee the upcoming future, both the medium and long term. That future depends on a variety of factors. So, keeping track of what works and what doesn't while beginning a business is the most crucial thing you can do as an entrepreneur. Always be sure to assess how things are affecting your revenue and, ultimately, your final consumers–who truly are the heart of your business.

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Ready to bring your startup to the next level? Apply to MassLight’s next batch. MassLight supplies capital and a dedicated tech team. We take equity in return. Have questions? Refer to our FAQ page.