Writing a business plan isn’t just about raising capital. It can be a very effective way to make your strategy and approach explicit, which is important if you are going it alone, and even more important if you have partners and want to make sure you are all on the same page. It’s also a great vehicle for communicating your ideas to outsiders, as a way to get advice.
Of course, if you want to raise capital for a business—whether you are just getting started, or growing an existing company—you’ll want to communicate your vision to investors in a persuasive, compelling way. A good business plan will help you do just that.
Regardless of your purpose, it’s important to strike a balance between planning and acting. Plan too much, and you will waste critical time. Plan too little, and you may overlook important considerations. In between lies the goldilocks approach: Just the right balance. That way, you can move quickly, with flexibility to adapt as you go, and keep an eye on the big picture.