7 Reasons Why You Need A Business Plan
The act of planning is the most important thing a company can do. The one thing I have learned in my career is that a goal without a plan is just a wish. Without a business plan is like trudging into an unknown place without a map. A business plan defines your business, identifies your goals and serves as your company’s resume. It helps you allocate resources properly, handle unforeseen complications and assists in making good business decisions.
TAKE TIME OUT TO PLAN
Taking a small time out of business on a regular process to create a business plan will provide substantial benefits. These benefits can be obtained by every business that puts into place a structured approach to creating a business plan each year. Finding the time to plan will reduce the risk of unexpected results.
ALL BUSINESSES NEED A PLAN
Whether your business is a start-up, small, midsize or a large company, you need a plan. Without a plan, your business will miss out on the opportunity to manage it better. You can not afford to be without a plan. Otherwise, you are not being proactive and letting your business depend on reacting to events. It is more positive to plan for priorities and manage your growth proactively.
KEY BENEFITS OF A BUSINESS PLAN
- PLAN Of ACTION, FOCUS AND DIRECTION: Business plans create a roadmap to success. A roadmap shows you where to go and what roads to take to get there. An organized business with detailed plans and clearly defined strategies is more likely to be prepared for business development than a business with no plan. And it sure makes the decision making on the limited resources available easier.
- A GUIDE TO GROW AND EXPAND: A business plan is a step by step guide to follow for getting from where you are now to where you want to go. In creating a plan, you will detail specific activities in each area of your business that need to be completed to achieve your goals. These tasks will be timetabled and allocated to team members in order to ensure everyone has clear goals and deadlines.
- TURN THE STAFF INTO A TEAM: A plan gives you a place to develop organizational responsibilities. This assures everyone in the business is working toward the same goal. Each team member knows the company plan, where you are going, what you are trying to accomplish, how and why. This motivates the team by giving them the opportunity to affect the outcome of the plan.
- DEVELOP PRIORITIES AND ASSIGN RESPONSIBILITIES: A business plan will be a step guide to follow for getting from where you are now to where you want to be. In creating a plan, you will detail specific activities in each area of the company that need to be completed to achieve the goals. These tasks will be timetabled and allocated to the correct department, ensuring everyone has clear targets and deadlines. The result is allocating resources where they will do the most good and developing the company by doing the most important things, accordingly to the objectives of the plan.
- MARKETING AND BRANDING: Marketing is a key part of the business plan. If you can create a detailed marketing plan with a marketing calendar, you have a much better chance of succeeding. Marketing drives revenue. Never forget that. What are the actions you will take to build business? How will customers find out about it? Branding is the second most important part of your marketing program. Too many businesses look alike. When you make the investment to brand your business, you set yourself apart. When you take the time to create your company’s values, mission statement and advantages, you can share with your prospective customers what they will receive in terms of benefits from working with you.
- TRACK PROGRESS AND MONITORING RESULTS: Think of a plan as a business positioning device. With a plan, you can track your progress towards goals, measure results, and manage the business. This way you will be able to see how well you are sticking to the goals and objectives you set for yourself, in addition to how well you are abiding by your financial guidelines. If you see any issues, you can take corrective action right away.
- FINANCING AND PLAN FOR CASH: Financing a business is one of the most critical aspects of its operation. The business plan will determine your financing needs and can assist you in acquiring the necessary financing that is required in order to achieve your goals. Cash flow plans are a core to a business plan. It dictates the level of operations a company can sustain as well as the goals required to meet the cash flow plan.
In the end, these are remarkable benefits of writing a business plan. The business plan requires objectives, execution and a measure of progress which over time enhances the value of your business. In addition, business plans also create motivation. The business plan requires you to create a vision of where you are going in the future. Creating the vision becomes motivational because it allows you to see the possibilities you can create for your business. And bottom line, it increases the future income and net worth of the business.