Your business model underpins your business plan. Chapters 6 and 12 showed you how to develop your business model and then modify it to reflect the changing circumstances you will inevitably face after launch. You need to develop a business model before you can draw up a business plan. Some start-ups need a business plan prior to launch, probably because they need external finance to enable this; others may be able to wait until after launch when the business idea has been proved and the model modified to reflect the realities of the market. Developing your business model and writing a business plan allows you to crystallize your business idea and to think systematically through the challenges you will face before you have to deal with them. The process allows you to develop strategies and strategic options that should improve your chances of success. It allows you to set key milestones against which to monitor your performance. And the greater detail involved in writing a business plan often ensures that the document faces greater scrutiny and things are not overlooked. But perhaps of more immediate importance, it can also act as a vehicle to attract external finance. All of these things can mean that the development of a sound business plan can improve your confidence in launching into what is an uncertain venture.
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