The simple answer is YES. But… it can be a lot simpler than you think. The purpose of your initial business plan should be an assessment for you… so that you can know if your business is viable, and if you have the right assets (money, skills, tools, resources/friends) to make it happen.
Don’t make it fancy. I typically start out in a simple text document outlining what is important to get my business off the ground. Here are some common categories:
- Product - What am I selling? How am I “making” my product?
- Investment – How much money do I need to spend before I can start selling?
- Competition – Who is your competition? Think broadly.
- Profitability – Based on everything you know, can you make money doing this?
- Marketing – How am I going to get customers?
- Network – Who are the people I’ll rely on? Suppliers, consultants, friends, etc.
- Timing – Map out your first ~year of operation
Start really simple… list out the categories, and jot down a handful of thoughts and concerns for each category. Every few days, review what you have an add or modify your plan based on what you’ve learned.
You can find a zillion business plan templates on the internet. Don’t buy anything yet. When it’s time for you to ask for more help from investors or potential employees, you’ll want to think about putting some formalities around your business plan, but you’ve probably got time…
