Why startups need business plans

Great ideas often inspire people to start a business. But ideas alone don’t make a business. Startup founders will likely need to develop a business plan to get their ideas off the ground and begin operations.

Many startup founders require some measure of outside funding to turn their ideas into businesses, and that’s where banks and venture capital firms come into the equation. Banks and venture capitalists often require prospective startups to provide business plans before they will consider funding them.

Business plans must include various things, including detailed descriptions of the business and the products or services the business intends to offer.