Reasons You Need a Business Plan: #1, 2, and 3
The reasons you need a business plan are the same for all businesses, no matter the type. Don’t ever think you can go very far without having a plan in place for your business. Every business owner should have a business plan. A business plan assists business owners on many different levels.
Reason #1: Funding
Obtaining the necessary funding to start or expand your business begins with a professional business plan. I have spoken to several lenders and investors and they all say the same thing. If it’s a new business, they want to know how you’re planning to start the business, why you’re planning to start the business, what need will you be meeting for consumers with your products and services, how you will reach them with marketing, how much you project that you need to get started, how much do you project monthly and how they will make their money back. If it’s an existing business, they want to know how well have you done in the past. Meaning, they want to see your financial reports. They want to know if the business has been lucrative, how well you’ve managed the money, etc.
Reason #2: Goal Setting
A business plan helps you to set goals for the business. Based on where you are when you’re writing your plan, you can list out your short & long term goals. Short term goals can be as short as 3-6 months, while long term goals should be a minimum of 3 years. It’s important to get your business goals out of your head and on paper. If you see them, you can believe them and achieve them. Think of it as a vision board. When you see it, you work towards achieving it because now you know what you’re working towards. Sidebar: A good book to read about goals and listing them out is Write It Down, Make It Happen by Henriette Anne Klauser. Great read. Check it out! I’m sure you can find it on Amazon or Barnes & Nobles.
Reason you need a business plan #3: Operating
A business plan helps you operate your business. When writing your business plan, you should list how you plan to operate the business. What will be your hours of operation, what are your policies & procedures for hiring, firing, or even giving raises to staff, policies & procedures for customers, what will be your marketing plan, managing the company’s budget and cash flow, etc. Be as detailed as possible as to how you plan cooperate your business.