Business Plans ARE Important!

Man reading business plan at night and checking his watch

Business Plans ARE Important!

 

If you are not already convinced of your need for a business plan, let me give you a bit of info concerning one. A business plan conveys the organizational structure of your business, including titles of directors or officers and their individual duties. It also acts as a management tool that can be referred to regularly to ensure the business is on course with meeting goals, sales targets or operational milestones.

 

Business plans are important documents used for planning out specific details about your business. They can range in size from a simple few sentences to more than 100 pages with formal sections, a table of contents and a title page. According to Entrepreneur Magazine, typical business plans average 15 to 20 pages.

 

Comprehensive business plans have three sections:

 

Business concept

 

Marketplace

 

Financial

 

These are broken down into nine components that include:  the overview or summary of the plan, a description of the business, market strategies, competition analysis, design, development, operations, management, and financial information.

 

Even small one-page business plans have importance and purpose for the success of the business.

 

Clarify Direction

 

The primary purpose of a business plan is to define what the business is or what it intends to be over time. Clarifying the purpose and direction of your business allows you to understand what needs to be done for movement forward. Clarifying can consist of a simple description of your business and its products or services, or it can specify the exact product lines and services you’ll offer, as well as a detailed description of your ideal customer.

 

Future Vision

 

Businesses evolve and adapt over time, and factoring future growth and direction into the business plan can be an effective way to plan for changes in the market, growing

or slowing trends, and new innovations or directions to take as the company grows. Clarifying direction in the business plan lets you know where you’re starting, future vision allows you to have goals to reach for.

 

Attract Financing

 

The Small Business Administration states, “The development of a comprehensive business plan shows whether or not a business has the potential to make a profit.” By putting statistics, facts, figures and detailed plans in writing, a new business has a better chance of attracting investors to provide the capital needed for getting started.

 

Attract Team Members

 

Business plans can be designed as a sale tool to attract partners, secure supplier

accounts and attract executive level employees into the new venture. Business plans can be shared with the executive candidates or desired partners to help convince them of the potential for the business, and persuade them to join the team.

 

Manage Company

 

A business plan conveys the organizational structure of your business, including titles of directors or officers and their individual duties. It also acts as a management tool that can be referred to regularly to ensure the business is on course with meeting goals, sales targets or operational milestones.

 

There are many sites where you can get a Business Plan template. Having a template takes all the guessing out of it.

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