The importance of a business plan comes down to growth, organization, and preparation. A business plan is used not just to start a business but also when you are looking to improve your business. Bplan, the leading online planning resource for entrepreneurs, projects that a business plan can help your business grow by roughly 30% if done correctly. Growth is substantial for any business because along with expansion comes more investments, more money, more customers which gives you a bigger audience as you track the progress of your business. Funding is also a big benefit of having a business plan. It makes networking easier as your business plan makes your company more appealing to work with and invest in.
Strategy is where you ultimately want your business to be at the end of this plan, and you have to create steppingstones to get there which is the basis of your goals and milestones. Strategy is very important because without it your company will most likely go nowhere fast without a sense of guidance and direction – the strategy is what makes the business plan.
Having a business plan in place prepares you when problems arise, you won’t have to hit the panic button. You are equipped with action and contingency plans because you have been proactive outlining effective strategies. Identifying and thereby avoiding risk is another crucial tactic that a business plan provides. Lenders and/or investors, key concern is trying to balance the risks inherent in your business, your plan identifies the nature and size of the risks and outline ways to mitigate those risks. Continually reviewing the plan helps determine what has been working and what hasn’t, to understand what to adjust as you carry out the strategy.
So, if you’re starting a business, these are just some of the key points to consider. Developing a business plan FIRST, will only benefit you in the long run and it is not that hard with the right resources. Remember there is no right or wrong way to write it, customize it for your business needs.