Reasons Why You Need a Business Plan
Creating a New Business
Use a plan to establish the proper steps to starting a new business, including what resources will be required, and your expectations of your new business.
Proving Your Seriousness
A formal business plan is necessary to show that you are committed to building the business.
Dealing with Professionals
Share selected highlights or your plans with your attorneys and accountants, and, if this is relevant to you, consultants.
Understanding Your Competition & Customer
Creating the business plan forces you to analyze the competition. All companies have competition in the form of either direct or indirect competitors, and it is critical to understand your company's competitive advantages.
Who are your customers? Why do they buy when they buy? Why don't they when they don't? How would you attract them once you open your business?
The process of creating the business plan helps to minimize opportunity costs. Writing a business plan helps you assess the attractiveness of this particular opportunity, versus other opportunities.
Mapping Out Your Focus & Efforts
The business plan provides a roadmap from which to operate, and to look to for direction in times of uncertainties. Without a business plan, you may increase your risk and jeopardize the growth of your business.
Selling Your Business
Help buyers understand what you have, what it's worth and if it is something they want to purchase.
Tracking Your Success
A business plan allows you to compare actual operational results against the business plan. It allows you to see whether you have achieved your overall goals and help you to make adjustments if you need to.
Growing Your Existing Business
The business plan can help you to establish strategies to allocate resources to help you grow/expand your business.