It would be some kind of a sick joke if you started a business without a business plan. A business plan is a blueprint for your business. It is not a single document that you just started out in the first few months and then set it aside. It may change over time as the business progress, and as the objective changes, it will be a great help.
During the growing stage of the business, the updated business plan associated with the change of the business objectives, it will be useful for the forecasting or raising an additional capital for expansion.
Some of the reasons below encourage you on why you should have a business plan.
It tests the feasibility of the business idea.
Creating a business plan is the best method to test whether or not the idea of the business you wanted to start is feasible. Assessing whether it is a practical move or not can bring you to safety. It can save you a tantamount of money and time if the business plan reveals the idea is achievable or not.
Often than not, business ideas are not considered in the marketing analysis or competitive analysis, this gives you the chance to think of another business idea.
Business planning can be manageable and effective.
Business plans are not only important for start-up businesses, but also for established businesses. With the growth and changes, new business goals are set.
It can help you look at the things you have achieved, the changes that should be done, and the directions to take for the business to grow even more.
It gives you the hint to success.
Business plan guides the path of your business, it gives you the outlook on the broad operational and financial objectives of the business.
Take the time to create a business plan for it will give you a smoother start-up period and fewer unforeseen problems as the business are established.
Funds will be secured.
A start-up and operating capital are needed for a start-up business. Without a well-thought business plan, you cannot borrow money from an established financial institution.
Meanwhile, businesses that are already established needs money for the growth of their business, a new equipment may be needed or a business expansion. A business plan gives you the idea of how much money you need.
Business plans can attract investors.
You need to have a solid business plan. A business presentation may catch their attention and interest, and they will thoroughly study the business plan before making any commitments in investing. However, be prepared for your business plan to be thoroughly inspected.
A business plan can be time-consuming, however, it is important to have it for you make your business survive the start-up phase and make it a successful one in the long run. Business plans can clarify the phases of your business. If you do not have a business plan, I advise you to create one.