Five Reasons Why You Should Have A Business Plan
Your company’s business plan is not just an indispensable planning tool―it is also your roadmap for success.
A business plan includes a description of the business, including plans for operations, marketing, management, and finances; a competitive analysis; and more. If you have not yet taken the time to create one, here are 5 reasons why you should:
- To Determine If Your Business Idea Is Viable – Ideally, the time to write a business plan and see if your idea at least works “on paper” is before you open your doors! However, as your business and the economy change you should revisit your plan to see if what was a viable business concept in the past still makes sense today.
- To Learn from the Process – All that research, analysis, and introspection will help you see things from a new perspective.
- To Understand Your Financial Needs – By taking a good look at where your company is, where you want it to go, and how you intend to get it there, you’ll get a much clearer understanding of your financial picture.
- To Satisfy Bankers & Investors – Whether you’re looking for a business loan or venture capital, anyone who is considering giving you money will want to scrutinize your business plan before making a decision.
- To Set Specific Objectives – Your business forecasts will establish what is supposed to happen. Your monitoring and tracking system will ensure that you regularly measure your progress against these benchmarks and take corrective action if you get off track.
As the Cheshire Cat said to Alice in Lewis Carol’s Alice in Wonderland, “If you don’t know where you are going, any road will take you there.” While the business planning process doesn’t guarantee success, it certainly does decrease the odds of failure.