Friday, April 5, 2013

3 Reasons why Business Plans are Ineffective for New Startups

Business Plan is a lengthy document which is prepared with lots of brain muscle to work out the market gaps, competition dynamics, financial feasibility, expected profits, projected cash flow, tentative organizational structure, projected cash flows, etc.

The purpose is to sketch the outline of a new fully functional organization with its complete structure, provide an economic justification for its creation, and attract potential venture capitalist to invest it in the idea with the motivation of achieving break-even in near future and possible returns after that.

The major problem is that the effectiveness of this document is more hypothetical than real! and can cause trouble for you in the following ways if you are new in the business.