5 Reasons to Have a Business Plan

Posted: July 13, 2012 in Growing your Business

Are you thinking about a small business? Make sure you have a business plan, even if you are not raising funds anytime soon.

Creating a business plan doesn’t mean that you have to spend long and lonely hours in the library for weeks, compiling a 30-plus page worth of content. You can always come up with a concise and efficient business plan in under a month, working only part time on it. Don’t forget to make a presentation format of your plan in Keynote or PowerPoint for easy sharing. So why do you need a business plan? Here are the top five reasons for every business owner to prepare a business plan.

Avoid mistakes. The last thing you would want is to work hard on your start-up for a year only to realize that you were meant for failure right from the start. A lot of founders have learned this the hard way. They didn’t set aside enough funds to reach their business goals, don’t have a viable way of raising funds, and took on partners with the wrong resources and skills. A business plan serves as a blueprint for your business success. It ensures that you are going on the right path.

Counterbalance emotions. There are moments in your start-up experience that you feel manic and so passionate about your business ideas that you lose sight of reality. There are times when you are overwhelmed by exhaustion, fear, or doubt. And when emotions start to get hold of you, having a business plan keeps you on track, and makes you look at things objectively.

Ensure that everyone is on the same page. Chances are, you are probably building a company with partners so that you can launch smarter and faster. But even if you don’t have business partners, you will always have friends, family, and advisers. Having a business plan lets your start-up head in one direction.

A game plan. When it comes to start-ups, execution is everything. This only means that you need to set priorities, measure performance, and establish goals. What features will your target consumers want? Will customers purchase your product? How will you attract consumers in a scalable and cost efficient way?

Raise capital. If you are thinking of getting a loan or raising up funds to finance your startup, you need to communicate your vision in a concise, vivid, and compelling way—and a good business plan will help you do that.

If you are having a hard time organizing your thoughts and putting it into texts, you might need business plan writing services. Invest in a good company for the best results!

  1. Thank you for making the effort and spreading this information with all of us. It was indeed very useful and informative while being straight forward and to the point.

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