How many people that want to start their own business have a business plan in mind as one of the first things they must do before opening their doors? Not many… Recent research reported by the “Start Up Donut” showed that more than 1.5 million UK SMEs (about one third) don’t have business plans.
Every business should have a business plan, since not having it may cause a messy and costly take-off of your business. Here are reminders why having a business plan before starting your business is important:
What is a business plan?
It’s a written document that describes your business objectives and strategies, your financial forecasts and the market you are targeting. It will help you set realistic and timely goals, secure external funding, measure your success. The plan also clarify operational requirements and establish reasonable financial forecasts.
Why do you need a business plan?
Your need a plan that will help you to focus on how to operate your new business and so give it the best chance for success. A well written plan with realistic financial proforma statements will improve your changes to secure funding for your start-up business.
A marketing plan may help you to market your product or services at the right place, at the right price and to the right people. The plan will identify what the needs and wants of your customers are also who your competitors are and how you should position your products or services accordingly.
Lastly, will a business plan answer questions such as where are you now? Where do you want to be? And how will you get there? The business plan should be revised regularly since the business environment of today is extremely dynamic.
In some ways, preparing a business plans are similar to writing a term paper. Getting started may be agonizing, and you may find it difficult to decide what to say, especially if you lack experience and aren’t sure what issues need to be addressed. Even when you know the issues, you may have difficulty expressing your goals and the strategies you plan to use for achieving those goals.
Maybe you need a bit of help.
A well researched and written Business Plan helps to get your business started the right way.
Read also: Why Do You Want To Write A Business Plan?
Longenecker, J., Moore, C., Petty, J. and Palich, L. 2003. Small business management: An entrepreneurial emphasis, Thomson-Southwestern.