A business plan is essential when forming any legal business entity. The Internal Revenue Service (IRS), banks that might give a loan, and commercial property owners all generally look at a company’s business plan.
Business plans are living blueprints that change with your business needs. While these plans are generally not final, they may serve as useful guides for the direction of your venture. If you are looking to start a company, you may need help from a lawyer in building a business plan in Minnesota. Without this essential step and the help of a business formation attorney, your company may never leave the ground.
Traditional Business Plans vs. Lean Startup Plans in Minnesota
If a business plan needs to be drafted quickly or if the business is fairly simple and straightforward, a lean startup plan could be written. If not, a traditional business plan is recommended. The key difference between the two is that a traditional business plan has more detail and protracts at least three to five years into the future. Traditional business plans generally include:
- Executive summary
- Description of the business
- Services or products
- Analyses of the industry and market segment
- Organization and management structures
- Financial plans and projections
Conversely, a lean startup plan is a quick summary of the business that contains a mission, value proposition, partnerships, customers, resources, activities planned, relationships, and revenue streams. The lean startup model may be useful to some entrepreneurs as it generally requires fewer specifics, but it may also be less helpful as a roadmap for the business’s immediate future.
A traditional business plan is more common than the lean startup model. Although an entrepreneur could have an extremely long and detailed business plan, this is usually not recommended unless there are many investors because it is probably not going to be followed too closely. It is best to keep the business plan brief and to the point. To ensure brevity when building a business plan, it may be useful to work with a lawyer in Bloomington.
How Could an Attorney Help Draft a Business Plan?
A Bloomington business formation lawyer could help with a variety of forms, requirements, and legal documents needed to set up a business entity. Business owners frequently want to focus on the business and not so much on the inner works and the legal documents that are required to get their company where they would like to be. It is always better to have a lawyer involved from the start to create a solid foundation for prosperity and expansion.
Retroactively trying to fix a problem is more difficult and costly than if the business founders had gone to a lawyer at the start to ensure all aspects were handled properly. That goes towards any legal issue. If business-people secure the right kind of lawyer, ask the appropriate questions and get the proper guidance ahead of time, it may be better for the business and their bottom line in the long run.
When other partners or members are involved, an operating agreement, bylaws, and buy-sell agreements are key to building a basis for how this enterprise will work for everybody involved in Bloomington. These structures effectively govern the business entity and spell out how things should be done whether it is making a decision by vote or resolving a dispute. Even with a fully built-out business plan, the IRS, banks, and landlords look for the internal bylaws or operating agreement to ensure they follow certain formalities.
What to Look for in an Attorney When Building a Business Plan in Minnesota
When looking for a business lawyer, the first thing to determine is whether the lawyer is experienced, knows what they are talking about, and are familiar with their specific industry. It is essential to work with an attorney that is ready to work with you and respond to the needs of your business as they arise. A strong business attorney is in some ways similar to another partner in your company.
Your lawyer could stand by your side and could fight for the welfare of your company from building the business plan in Minnesota until you decide to sell or dissolve the venture. To start exploring if our attorneys are the right fit for you and your business, call today. A skilled lawyer could be the ally you need to build a strong foundation for your business to build off of.