Why do you need a Business Plan?
by Mike K. Post your article at Aleshatech.comIf you’re like most small business owners,
you cringe at the idea of a Business Plan. Most importantly you don’t believe
that you need one. You believe you have a good plan, and you keep it in your head.
Do you See the Problem?
The notion of not needing to document your business plan
and keeping everything in your head is a big concern. This approach in your
head offers no clarity of the present or future opportunity for your business,
no focus on where you are going and no measurement for actually doing what is
necessary to achieve your sales and growth objective.
A business
plan is a valuable tool to help direct your decisions, whether you are starting
a new business or looking for ways to improve an existing one. A business plan
is a road map that describes a business, its products, or services, how it
makes (or will make) money, its management and employees, funding, operations
model, and a variety of other specifics that are critical to its success.
A good business
plan helps entrepreneurs in concentrating on the actual steps required to see
their business plans through to fulfillment, and in addition, it assists them
in achieving short- and long-term goals. So, if you are feeling frustrated, angry, or concerned that
the business you have worked so hard for isn’t performing and achieving your
goals then it’s time to take a step back and think about doing a business plan
and getting on the path to resolving these frustrations.
Starting the
process to take a step back to build a business plan will force you to ask yourself
a lot of hard questions and take the time to come up with well-researched and
insightful answers. The process of creating the plan and putting thoughts on
paper helps to articulate your vision in realistic terms and better determine
if there are any gaps in your strategy.
The objectives of your Business Plan should focus on how the business
will prosper and grow today and in future. It can become a reference tool to
keep management on track with sales targets and operational milestones.
When used properly and consulted regularly, it can help you measure and manage
what you’re working so hard to create.
Here are some
key outcomes you can achieve with a good business plan:
1.
Define your goals and the tactics that will
help you achieve your goals. All the short-term targets and long-term
milestones are clearly indicated in the business plan, allowing you to build
tactical plans to achieve them.
2.
Definition of the markets your business will
look to play in and when, as well as those areas you don’t want to expand
towards.
3.
Definition of your competitive advantages so
you clearly show what helps you to stand out from competitors and establish your
brand positioning in the market.
4.
Document and test your revenue model to
ensure you cover all potential angles and threats.
5.
To build a funding plan for your business to
show how much working capital is required at different points along your
business lifecycle to achieve your growth targets. This allows you to predict upcoming needs and
start the acquisition of funds in a timely manner to stay on track.
6.
To be able to articulate the objectives and
plans for your business to key stakeholder groups. Potential investors, key employees and long-term
clients all can benefit by seeing the direction the company is heading to
motivate them to invest their time, energy and money in the business.
Based on this
there is no doubt that a quality business plan is critical to the long-term
success of any business. It clearly
defines the direction and the steps necessary to get there. With a good business plan, you will now be
able to see the path to success and be able to drive the execution of the steps
to get there.
BPF Solutions has decades of practical experience in
structuring businesses and business planning so that you can have a solid and easy
implement plan to prosper and grow your business.
A
Business Plan helps you focus on the road to success, and not get mired in the
weeds along the way.
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Created on Aug 10th 2021 04:33. Viewed 96 times.