WHAT IS A BUSINESS PLAN? IS IT NECESSARY FOR YOUR BUSINESS?

Business News Daily describes a business plan as a “written outline that you present to others, such as investors, whom you want to recruit into your venture. It’s your pitch to your investors, sharing with them what the goals of your startup are and how you expect to be profitable.”

While a business plan is an important piece of document, not everyone sees the need to have one. Though, not everyone agrees with the idea of a business plan being irrelevant.

Great ideas can become useless if they are kept dormant. Your business will only be successful if your ideas are turned into innovations through strategic marketing.

Business plans come in handy especially when you are looking for funds. Your business plan should speak for itself.

Writing a business plan will help you understand clearly what you need to do to reach your goals. The finished business plan also serves as a reminder for you to stay on track. A business plan can also be described as a roadmap to success.

WHAT IS THE PURPOSE OF A BUSINESS PLAN?

Studies show that 65% of the fastest-growing businesses have business plans, proving that existing businesses can too benefit from updating their plans.

in short, a business plan works as a decision-making tool. it will help outside parties get a clear overview of the status of your company. By establishing your business’s strategies in a formal document, you will be able to put your theories to test.

WHY DO YOU NEED A BUSINESS PLAN

1.     TO PROVE THAT YOU ARE SERIOUS

You need to show a formal document to all the interested parties to prove that you are serious about your business and committed to achieving your goals.

2.     TO RAISE MONEY FOR YOUR BUSINESS

Potential investors will want to see a written business plan before they give you money. You need to ensure you have a thorough financial plan that shows the probability of success and how much you will need for your business to be successful in the long term.

Your business plan should convince the lenders and communicate your ideas clearly to them.

3.     TO MAKE GOOD CHOICES

A business plan doesn’t merely concentrate on financial plans. It includes 

• management plans and issues
• technology planning 
• Human Resource (HR) planning
• how to create value through product development, etc

This plan will keep you on track and help you come up with great marketing strategies that align with your plans. 

4.     TO AVOID BIG MISTAKES

Startups tend to fail due to a lack of capital, inadequate teams, stiff competition in the market, and ambiguity in pricing.

Business plans can help you spot mistakes before they can become a threat and eventually lead to huge losses.

ENDNOTE

Having a business plan will allow you to depend less on your luck and more on hard work, make better decisions, and enjoy the clearest possible view of the future of your business.