Many business owners realize that running a business without having a plan is like riding a motorbike up a mountain while blindfolded. According to a variety of studies, more than half of companies do not have formal plans in place.

Creating a business plan takes time and effort, and it’s essential to take into consideration the needs of your target audience when you write it (for instance that if you’re seeking investors, your plan will require more attention to detail than a plan you’re using as a plan for yourself). While no business plan can predict the future, a well-crafted plan helps you avoid common pitfalls and allows you to capitalize on opportunities, and provides a framework for success–even if you don’t follow it precisely.

A solid business plan begins with a brief overview of the background of your company and the reasons you’re starting this business and how it will fulfill a need in the market. It should include any intellectual properties that give your company an edge in competition. This section can include your mission statement as well as the names of the published here most important team members and their responsibilities in the business.

The next section explains the products and services you plan to offer, the method by which you intend to provide them and your pricing strategy. Include a full financial report that outlines your initial costs as well as revenue generation plans and projected timeline for profitability.