Why Is it Important to Have a Business Plan?

If you are asking yourself this question, the chances are that you are planning a business. While most big enterprises may easily admit their need for a comprehensive business plan, many one-person or small businesses may doubt if this process is necessary. But a business size does not have to determine its need for a plan. Success in businesses – whether small or big – depends upon drawing out a plan and following it to terms. Here are three reasons … Continue reading “Why Is it Important to Have a Business Plan?”

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If you are asking yourself this question, the chances are that you are planning a business. While most big enterprises may easily admit their need for a comprehensive business plan, many one-person or small businesses may doubt if this process is necessary. But a business size does not have to determine its need for a plan. Success in businesses – whether small or big – depends upon drawing out a plan and following it to terms. Here are three reasons you must not skip the planning stage for your business, no matter its size.

  1. It is A Guard Against Losing Focus

Every experienced business person can attest to how easy it is to lose focus in business. So many things that are not important to your business can easily take all your attention and resources if you don’t have a plan. As you launch into the daily routines of your work, many things can begin to throw themselves at you in the name of opportunities, and your only shield from getting distracted is by setting a plan from the outset and following it. A plan ensures that you don’t get to the bridge first before thinking of how you would cross it.

  • Financial Management is Easier with a Plan

Businesses rise and fall on the whims of its owner(s) to manage resources effectively. Where do you hope to raise money to fund your business? Will you be taking credits or relying on goodwill donations from friends? These are some of the questions a business plan addresses. If you don’t put this into writing, you may start and stop halfway because you can no longer fund the business.

When considering borrowing money to start a business, it’s good you read people’s pieces of advice on picking a credit card. Not all companies should start on credit, and many experts would even advise that you don’t borrow money to do business. With a plan, you can weigh all your options to arrive at the best for you. Without a plan, every opportunity becomes attractive, which isn’t right.

  • A Robust Business Plan Ensures Continuity

A lot of things can happen that can keep the original brainchild of business away from it for a long time. It can cause sickness, extended vacation, or even death. Any business that has a well-thought-out plan can pretty much outlive its owners. More so, as expansion occurs, it won’t be easy for a person to monitor the progress; a plan is what everyone would need to key into for the business to keep flourishing.

Who Needs a Business Plan?

Now, it’s easy to conclude that only starters should worry about a business plan. But that conclusion will be wrong. Even established businesses can require one, especially if they are taking on a new challenge or trying to expand. One written plan cannot possibly suffice in all situations. As such, any entrepreneur that is continually evolving and taking new challenges needs an original business plan.