Turning an idea into a viable business that can sustain itself requires a fair amount of planning, decision making, execution, and problem-solving. Every year multiple promising startups are launched but very few manage to become successful. The reason why a startup fails can be either due to the idea lacking originality or due to faulty planning and execution. Therefore, it becomes imperative that careful consideration and effort need to be put into the business plan.

One cannot underestimate the importance of a good business plan. Even if you have given it considerable thought, a business plan may be more important than you originally thought. Once you delve into the creation of a plan, you will realize that it more than simply putting an idea down on paper. Apart from helping you understand how you are going to set up your business, it can help you do the following; all of which are essential to your startup.

Prioritize:
Every business has its variables and it is overwhelming to give attention to everything at the same time. Planning helps prioritize. You can determine which tasks need your immediate attention and what you can delegate. It also allows you to prioritize the task based on time and emergency.

Strategize:
Having a business plan helps you determine the next steps that you need to take. It will help you be time-efficient and economical. Developing a business plan means developing a strategy, understanding your objectives, and putting them into action. It allows you to set goals, and avoid major errors.

Finances:
Every start-up needs to be able to handle its finances carefully. Mismanaging money can deeply affect the success of a start-up. For example, overspending is bound to have an adverse effect on the working capital of the business. Having a business plan; will help you to allocate resources, keep track of your expenses, and stay within budget.

The Bigger Picture:
A business cannot be seen in parts. It is not just the product or the idea. Everything that constitutes a business is the business. Having a business plan allows one to see the whole picture and every detail that needs to be given attention. It also determines stakes, stakeholders, goals, and the journey.

Accountability:
As mentioned earlier, a startup cannot be built by one person, therefore, delegation is necessary. However, even delegation cannot be done without planning as it will undermine the accountability for actions. Mismanagement and lack of accountability can severely hamper a startup's performance. A business plan helps delegate, but it also helps keep track of the work individuals are doing.

Risk:
While uncertainty is inevitable when starting a business, having a plan helps minimize the risk. While launching your startup, it is impossible to have every variable under your control. Therefore, it becomes important for you to control whatever you can. This helps minimize risk, as it gives you a clearer picture of what to expect, in terms of possible conflicts and issues that may crop up. Business plans also include projections regarding the business' success, finances, market, etc., all of which help keep track of the startup's performance and make adjustments as necessary.

We hope we have convinced you to create a business plan for your startup. If nothing else, a business plan becomes the starting point of your company and will give you clarity about what you want from your project and how to achieve it. Planning the business will allow you to be practical and help convert your dreams into a reality. Who knows, maybe making a business plan will help you improve your idea even more.