The first step to understanding why it is necessary to have a written business plan for your business is understanding the meaning of a business plan itself. That brings us to the question, “what is a business plan?” A business plan is a written document that shows the map of a business.
It is imperative for business owners to understand that writing a business plan is not equivalent to wasting time that could be better spent, in fact a written business plan helps you to save your business time and money.
Let us get to the core essence of this post, why is a business plan of any necessity???
1. For feasibility studies
In the course of writing a business plan, every aspect of the business idea is thoroughly considered. A business plan allows you to critically examine if your business idea possess any ounce of feasibility.
2. To define business goals and visions
A well written business plan helps a business owner/ entrepreneur to put the business goals and visions in clear sentences. It helps the business to always stay on the path to achieving these goals and visions without the slightest deviation.
3. To keep track of performance
You can only evaluate your business performance when you have a guide on what your projected performance at the time should be. A written business plan always show the projected performance of a business. When you are equipped with a written business plan for your business, you are able to truly evaluate how your business is performing without any form of bias.
4. To map out marketing strategies
There are numerous ways to go about marketing your business for whatever purpose you have in mind. The most effective method to understanding the marketing strategy that would work for your business venture should be in your business plan. This information about your business marketing strategy helps you to maintain uniqueness in your marketing.
5. To have a clear picture of the future
A well written business plan, gives you a glimpse of the future of your business. Putting your business plan in writing helps you to see the future of your business in a better light of understanding. Thinking about your business could make the future look blurred, but actually putting it in writing force you to have a clear picture of how far your business would go.
6. To secure funding
If you are really serious about obtaining funding for your business venture, you have to have a business plan written. To communicate your seriousness about your business to people interested in providing funding, you have to put a written business plan in place.
7. To manage funds
Funds can be highly misappropriated when there is no clear definition on it’s management. This is where you need to rise up to the occasion of writing your business plan. Funds is the most important vehicle of running a business. A well written business plan should contain how funds would be duly spent. This reduces the possibility of funds misappropriation.
8. To define team players
One of the reasons why startup companies fail is as a result of the wrong team players. In your business plan, you must have written a clear statement on your business goals, visions and mission. This clear statement helps you to define who your team players should be.
9. To identify your target audience
Because a written business plan contains every minute detail of your business, it helps you to narrow down your target audience. Your target audience are those that would retain interest in what your business has got to offer.
10. To improve overall efficiency
A written business plan is key to improve your business overall efficiency. All the information that is contained in your business plan helps to boost your business overall productivity and efficiency.
Going into business without a business plan is like going on a mountain trek without a map or GPS support – you’ll eventually get lost and starve! – Kevin J. Donaldson
I think you are now better equipped with information on why you should get down to writing your business plan.
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