Almost every business owner knows that operating a business without a plan is similar to riding a motorcycle up a cliff blindfolded. However, according to a variety of studies more than half all businesses do not have a formal plan in place.

It takes time and effort to create a business plan. It is important to think about the needs of your audience when you write the plan (for instance, you’ll need more rigor if you are seeking investors than the case if you simply want to use it as a guide for yourself). A well-crafted business plan will aid you in avoiding common mistakes and make the most of opportunities. It can also serve as an outline for success even if you do not adhere to it precisely.

A great business plan should begin by providing a brief overview of your business’s history and the reasons you’re launching this venture and how it will meet a need in the market. It should also cover any intellectual property that you have which gives your business an advantage. This section can also include a mission statement as well as a list of the key team members and their roles in the company.

The next section will explain the services and products you will offer as check well as your pricing strategy and the way you plan to deliver these. Include a comprehensive financial report that outlines your initial costs and revenue generation strategies and the estimated timeframe for profitability.