25 REASONS WHY YOU NEED A BUSINESS PLAN
In the world of business today, to an entrepreneur who aim at succeeding in a particular business, a business plan is pertinent. A business plan could mean expression of business ideas and thoughts by an entrepreneur who wishes to succeed. Planning and having a thought about business is not enough, but the most important thing is to put those ideas and thought down in such a way that will make it appealing, thereby inviting people (potential investors, potential customers, business partners, e.t.c.). Thus, a business plan is document that sets the essential idea pointing out a business and related start-up considerations.
THE NEED FOR A BUSINESS PLAN!
- To provide clearly a statement of goals and strategies for internal use
Business plan is important as it will clearly reflect the goals of the business. Every business must have goals and these goals must show the essence of the business, as well as the possible time frame for which the goals can be executed. Hence, these goals must be achievable goals! It is important to know that stating business goals in a typical business plan is important, so also is the means of achieving those goals. The business plan guides the business in terms of strategy for internal use. This refers to the strategies for achieving the stated goals.
- Help to raise capital
One of the most important things in setting up and running a business either in the short run or long run is capital. You will be surprised how a good business plan could help you. As an entrepreneur or business owner, the long term objective is to expand more and in expansion, capital is needed. It is good to know that investors, partners, even lenders are always interested in a good business plan with achievable goals and objectives. A good business plan must state and demonstrate the financial plan and how much a business will need for the business to be successful in the long run.
- Imposes discipline on the entrepreneur and management team
The entrepreneur and the management team must act or behave in accordance with what is written in the business plan. Their behaviour must be geared towards achieving the goals of the business and also be discipline by not letting out the secretes of the business, in respect to the business strategies. Another reason why a business plan is essential for all businesses is because its aid discipline of both the entrepreneur and the management team to inculcate the habit of working to achieve all that is written in the business plan, thereby imbibe discipline in the entrepreneur and management team.
- To make timely and essential decisions
Writing a business plan by entrepreneurs is important because it enables him to make decisions that are vital to the business. Decision here does not only relate to finances or financial matters, but also some other issues like management issues, carrying out market research to increase consumer’s value. All these decision are very vital because they will affect financial and non- financial performance of a business. It is therefore important for you to prepare a business plan as it will guide you properly.
- Help secure favourable credit terms from suppliers
When you have a good business plan, it helps to secure a good credit terms with the suppliers. This evolves round you writing a business plan that is amazing with a successful future, everybody would want to be part of the story, including your suppliers, you would have a good term with them. A good business helps to build the trust with suppliers, most especially in the long run.
- Provide a credible overview for prospective customers, suppliers, and investors
A business plan helps you to analyze and give a valid summary of your potential customer, suppliers, and investors. Also, since a business plan can be shared with outsiders, it presents your business to your prospective customers, suppliers and investors. A good business plan will bring customers to you, invite suppliers to you, gets investors attracted to you. Hence, its important cannot be overemphasized.
- To communicate your idea with stakeholders
Business plan helps to communicate your ideas with stakeholder, and make them interested in your business. It makes people to want to work with your enterprise. For example, getting aid and assistant from outsider and getting partner(s) to work with. Business plan is important because it does not serve as document for attracting investors alone, but also a guide for business activities.
- Guide you through each stage of your business
Business plan serve as a guiding tool or document for businesses. This is another vital reason why you need to write a good business plan for your business. Because all the ideas are written in the plan, it is easy for you to fall back on whenever there is any issue, and will easily guide you through each stage of your business. Thus, when your business is passing through any stage, a business plan guides you not to deviate from the original goals, strategies and objectives. This enables your business to maintain its originality, makes you know what to do and take a timely decision.
- It will help you to understand the behaviour of your customers
One thing you need to know is that business plan is an ongoing process, and not a means to an end product or outcome. With this in mind, it will help you to always review your business at intervals. Doing this will enables you to understand why your customers behave in some ways. Why they buy? What they buy? When they buy? And what actually influence their consumption pattern. Analysis of customer is an essential aspect of business plan. This will enable you to create better product for them. Also, when you understand how your customers behave, it reduces wastage of resources for advertising and promotions.
- It will help you to know how much finance you need
It is good to know that a business plan will help you know the financial status and financial need of your business. This will give you hints on how to raise capital for your business, either now or later in the future. In your business plan, there is a portion for cash flow. This section states how much of capital you need and how much you will possibly earn in future from your products or services.
- It reduces the danger of chasing wrong opportunity
It is so sadden that most businesses today chase after wrong opportunities unknowing to them. This is what your business plan will help you do. It helps you to access several opportunities, analyze these opportunities, thereby enables you to make best decisions out of all the decisions available. Your business plan provides you with best opportunities among the alternatives and ensures you choose the best opportunities that will help your business in terms of decision making/taking.
- Your business plan attracts talents
Another reason for you to have to have a business plan is that its attract quality management team and top guys, business gurus, experienced and talented ones would want to be part of your business, because they will see your ideas as sound ideas and that your business is, with certainty will achieve its strategic goals. It is pertinent to know that the quality of your management team determines the quality of your business and your products/ services. With a good business plan, your business will attract talented ones and quality guys in business world and the outcome will be felt on your products /services.
- It helps to define your business’s role in market place
In the process of creating your business plan, with customers and your competition in mind, you would have known how to position your brand in the market place. Like, this will help you find the accurate position for your brand and how you can come into the market. In knowing the position of your brand, you need to understand the behaviour of your competitor perfectly well. A good business plan will guide you in decision making for your brand.
- Documentation of your business activities
Business plan will help you to document your marketing plans and strategies. In this phase, document on who your potential customers are, how to get to them, where to reach them. Also, your marketing plan may change at intervals, probably every year. So you need to be revisiting your marketing and other business activities as they are very crucial for business growth. Other activities can be promotions, financial reports, research and designs, e.t.c. those activities needs to be documented for proper assessment for growth and development of your business.
- It makes you carry out research and to understand your market
Business plan makes you to know the major threat in your industry, to know those businesses trending in your industry. Also, research will give you deep knowledge on the size of market for your products/services. This will enable you to strategize, and come up with decisions that will boost your business stand in the industry.
- It is a proof that you are serious with your business
Partners, customers, investors, lenders and other outsider will take your business as a serious one, because there is a guide for your business activities and operations (business plan). Having a business plan shows that you know what you are doing, what you want, and how you want it. It is therefore important for you to have a business plan today, as it contributes in huge way to your business success.
- It helps to show you’ve gone
Business plan is a good measure of success of your business; it will enable you to compare what you have in your business plan with the current or actual operations of your business. The business plan is a document of judging how successful your business has been within a stipulated time of operation. That is, comparing the budgeted activities with the actual activities of the business. This will help you to know what approach to use at every stage of your business.
- It will help you see new opportunities
By comparing your present budgeted activities in your business plan with the actual activities, you tend to get new opportunities. This is because you’ve seen loopholes and you respond to that through interviews, brainstorming, and creative and analytical thinking. A good business plan which always serves as a guide to your business will always help you uncover new opportunities, especially in your industry.
- It enables you carry out good feasibility study
A business plan enables you to carry out a proper business planning process. Like know the market you want to enter, studying the number of successful businesses in the industry, identifying how your products/ services can enter and survive the heat. All these are contain in your business plan, which will enable you to carry out good feasibility study, even before you enter into the industry, you would have gotten full knowledge and how to survive the competition.
- It helps to identify potential problems
Another reason why you need to have a business plan is that it gives you clear view of problems you might likely face in your business, and once the problems are identified, you can easily prepared for them even before they start surfacing. This is the advantage business plan will give you; in business plan you do research and in course of your research, you might find out some problems your business may likely face. Thus, it gives you advantage to work on problems even before they occur.
- Increase your chance of success
Business plans create an avenue for your business to be successful. Most businesses fail because of lack of strategy and proper allocation of resources. Most business owner does not recognized this as an important document to have, thus, there business fail. For you to increase your chance of success, you need a business plan!
- It is a proof that your business can succeed
Another reason why a business is essential for you is because most business owner thinks business is only about passion, vision and ideas, but failed to recognize that as important as ideas, visions and passion is, so also is the ability to plan out those ideas and visions. And this can only be done through business plan. When you have a business plan to guide your ideas, visions and passion, it is a good proof that your business can succeed or it’s a good proof for viability of your business. Vision, passion and ideas alone are not enough. Get a business plan!
- Your business plan is an asset
As a business owner, maybe after a while you might decide to put your business up for sale, having a good business plan will put you in a good position and the value of your business might increase because of a good business plan, which can also be used as a model by the person who acquired the business.
- It will help you steer your business as you start and grow
As an entrepreneur, a good business plan guides you through each the stage in your business, starting from the time the business starts and how you manage your business. It is a way to think through and detailed all the important elements on how your business will run.
- It helps organize your resources
A business plan will serve as guide on how to structure and allocate your resources. The business plans can quickly you whether you will make profit or loss, and it reflects how much those losses can be every month.
If you need a service of a Professional Business plan writer, then Dayo Adetiloye Business Hub is the place to go Call or WhatsApp us now on 081 0563 6015, 080 7635 9735 or send an email to firstname.lastname@example.org and we will solve any of your business plan problems.
Hope you enjoy this article?
Share your thoughts in the comment session.
Contact us today for your business consultancy and business advisory services. We can help you fine-tune your idea, structure your business, market your business, train your staff, consult on your retirement plan, coach you for financial success. We also write a business plan and help with fundraising strategies and Grant applications. We can help you start, grow, and expand your business.
Call or WhatsApp us now on 081 0563 6015, 080 7635 9735 or send an email to email@example.com and we will solve any of your business problems.
- 5 BEST SMALL BUSINESSES ROUTERS - November 8, 2021
- How to turn on RCS messaging in Google Messages on Android Devices - November 8, 2021
- 3 Days Training Via WhatsApp: How to Make Money Online in 2022 - November 7, 2021