Why a Business Plan
If you are an entrepreneur or a business person, you already know How to Write a Business Plan and also the need for it. If not, it is not end of the world. You can learn it from many sources. Below are few of the ways a business plan will help you. Let us see how.
Creating a new business
This step should be quite clear in your mind. We need a business plan to build a step by step strategy for our business. In a proper written format, a business plan can help you to figure out how to proceed in the correct direction in order to establish a business. While you start writing, you will get the new dimensions of your business. And during your entrepreneurial journey, a business plan is the right place to track your progress.
Growing the existing business
Even an existing business needs a business plan to jump the curve. Moreover, a Business plan is a living document; it will grow along with your business. Without the plan, it becomes difficult for any business person to figure the budget and methods to grow their business. If you have a business plan, well and good, you are on right the track. If not, it is high time to write one.
For a business Funding
It is evident that once you have a business plan it becomes quite easy to approach financial institutions, personal lenders, banks, Investors for business loan or fund . This business plan will clearly portray your business strategies, growth project etc , which will help the funders or financial institution to a decision in your favor.
Share your strategy and plans
It is always better to present your business plan with the right and trustworthy audience. They will add lot of value by suggesting or criticizing—which will ultimately prove to be beneficial for your business. And if this happens at the early stage of your business, say during initiation and study that will save lot of money, effort and your valuable time.
Moving to new space
Among fixed costs, rent comes pretty high on the list. Moving out to a new rented place is a decision which has to be taken carefully. Will your business produce enough output to cover the overhead costs? This can be figured out through your business plan. If yes, you can take the plunge.
Hiring new people
Hiring new people is an added fixed cost. If the people are going to help out in your business as per the plan, you can take the risk of hiring them. Once hired they should serve the purpose and this can be ensured if the needs of the business are clearly stated in your business plan.
For setting specific objectives for Management and employees
There has to a specific strategy and particular goal for your business. Unless you jot them down in points it would be impossible to understand and further explore them. Also, when you are hiring people, you need to put up a clear picture of your business strategies so that they can work on the same lines. All these can be achieved only through a clean and clear business plan.
Deal with professionals
There are many consultants, charted accountants who can provide inputs to your business. For this you need to have a business plan which will give basic idea of your business to these professionals who can then build on it with their expertise.
Valuation of the business
Valuation means total worth of your business. Your business plan will help to explain the officials about your business and its strategies to make money and how much of it goes in the running cost, what are the fixed assets etc. This procedure is done in the case of inheritance, break-up of partnership deed, dissolution of the business and tax issues.
Selling your business
As mentioned in the previous point, business plan is going to help in the valuation of your business while selling it. It will also help the prospective buyer to understand the goals of your business and clearly explain how can achieve it.
Contact ourbusinessladder for Market Research Consulting for more about Why a Business Plan.