Business plans are time consuming. They’re hard work, need a lot of research and feel like a chore. So, can you avoid writing one? Unfortunately, if you’re serious about your business and want it to succeed, you’ll stand a far better chance of doing so if you’ve taken time to think about your business idea and put a game-plan together. Therefore, it’s something that you need to focus on and complete. Although all the ideas for your business are swimming around in your head and you just want to get on with it, as soon as you start writing them down it somehow becomes more real. What’s more, the discipline of doing this will enable you to see if there are any fundamental flaws in your plan before you plunge in. Here are my three top reasons why a business plan is a vital component to your business success…
- First and foremost, it will allow you to assess the feasibility of your business before you start it. Researching the industry, checking out the competition and understanding how realistic your financial projections really are simply makes sense. Understanding your market, the target audience, how competitive you can be and the overall shape of the economy and how it’s likely to affect your business is a fundamental stating point that any business owner would be crazy to ignore.
- If you need financing for your business, then a business plan is essential. No bank, finance company or venture capitalist will take you seriously if you don’t have one. Even if family and friends are involved in financing your venture, it makes sound business sense to write a business plan so that you can prove the viability of your idea and instil confidence.
- If you’re thinking about selling your business or buying a business that’s already established, then having a detailed business plan will provide you with the information you need to establish value, and even to support that value if it is challenged. In other words, it’s a great negotiating and bargaining tool.
In essence, a business plan is a document that outlines the future of your intended business. It tells the story of what you plan to do and how you intend to do it. This is no time for ‘back of the fag packet’ planning so knuckle-down and devote the appropriate time to it!