3 Reasons You Need a Business Plan
As an entrepreneur it can be tempting to jump into a new idea immediately and move full steam ahead to begin a new business venture. However, you have to walk before you can run! Diving into a project can result with a huge to-do list, and not enough time and this is when the chaos happens. This is why it is important to plan the business and think through all scenarios before startup. Not only is a business plan a blueprint for the startup of your company, it will provide an outline for the first few years and also give you an idea of if the idea is actually viable before you invest you time and money in it. Creating a business plan can be the deciding factor in your viability, success, and in securing financing.
Viability of Your Business
One of the most important steps in the business plan is writing the marketing analysis and competitive analysis segments. These will help you discover and visualize what your competition will be and establish what sets your company apart and gives you a competitive advantage in the market. This, combined with the financial projections, can be a huge clue to the likelihood of your startup’s success. These segments will tell you if the idea is not profitable enough or if it would take too much time and money to sustain, so you can cut losses early on and move to the next idea. Much better to find out early than to invest years and significant amounts of money into something that won’t work!
Success of Your Business
The process of writing a business plan forces you to think through exactly what you want your business to be – what products or services will be your core offering, what you hope to expand to over the years, and what voice to the customer and marketing methods you will use, to name a few. By first establishing feasibility, and then running through potential situations that may arise during the launch and growth of a business you are setting yourself up for success. Be proactive, not reactive! It can be the difference in success and failure.
Financing Your Business
In addition to helping you establish a realistic dollar amount required for startup, the completed business plan will help you secure funding for your business. Most banks and investors will not even consider contributing money without a business plan because it demonstrates your commitment to your business, along with the viability of the idea and projections they can expect to see moving forward. No one wants to invest in a dead-end project!
This list includes three reasons a plan is extremely important, but there are many, many more ways a business plan can be beneficial for you and the company. At Pro Business Plans, we offer a variety of plans and other services to help you create a strong business and hit the ground running! Check out our other blogs for tips and resources, or contact us to get started today!