Do you write a plan first or you look for capital first?

[Etini]

It depends on the specific circumstances of the business and the entrepreneur's needs. Generally, it is a good idea to have a well-developed business plan before seeking funding, as investors and lenders will want to see a clear and detailed plan outlining the business's goals, strategies, and projected financial performance. A business plan can also be helpful for the entrepreneur, as it can serve as a roadmap for the business and help the entrepreneur to stay focused and on track.

However, there may be cases where an entrepreneur needs to secure funding before developing a detailed business plan. For example, if an entrepreneur has a great business idea but no assets or savings to invest, they may need to raise capital before they can develop a business plan and start building the business.

In such cases, it's important to have a clear and compelling pitch to potential investors that highlights the key aspects of the business idea and the potential for growth and returns. It's also important to be transparent about the risks and challenges involved, and to have a plan in place to mitigate those risks.

What do you think? Should a plan come before capital or vice versa?

 

[Jasz]

When starting a new business or project, the question of whether to write a plan first or look for capital first is a common one. The answer to this question depends on the specific circumstances of your business.

In general, it is a good idea to have a solid business plan in place before seeking funding. This plan should include details about your product or service, target market, competition, financial projections, and a clear explanation of how the funding will be used. Having a well-written plan will make it easier to secure funding from investors, banks, or other funding sources because it demonstrates that you have a clear understanding of your business and a plan for how to make it successful.

However, it is also possible to secure funding before having a detailed plan in place, particularly for early-stage startups. In this case, the funding may be used to develop a more detailed plan and conduct market research. For example, angel investors or venture capitalists may be willing to provide funding based on a compelling pitch or prototype, even if a detailed plan has not yet been developed.

Ultimately, the approach that works best will depend on the specific circumstances of your business. It's important to consider the stage of your business, the type of funding you are seeking, and the availability of funding sources. For example, if you are seeking a large amount of funding from a bank, you will likely need to have a detailed plan in place. But if you are seeking a smaller amount of funding from friends or family, a less formal plan may be sufficient.