Why Do You Want To Write A Business Plan?

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To write a  business plan may take up a lot of your time and financial resources. Here are some reasons why you need a business plan…

Why do you need to write a business plan?

To get money for starting your business

You may have a brilliant business idea, however, with no money to start; your business will remain an idea.

Most lenders or investors require a written business plan before they even consider investing in your idea. Landlords nowadays demand a written plan before they will lease your retail space.

Before making a commitment to you, they want to make sure your business has a good chance of succeeding.

It helps decides you to proceed or to stop

The most important person to convince about your business is you – the business owner.

The amount of effort that you put in planning your business may be fruitful in helping to find answers about yourself and the business. You will discover how money will flow through your business and the strengths and weaknesses that it may possess.

To improve your understanding of your business

Writing a business plan may allow you to see how changing parts of the plan increases profits or accomplishes other goals.

Using a excel spreadsheet to make financial projections gives you the opportunity to try out different alternatives more quickly. By using the spreadsheet,   you may discover what alternatives to use in order to improve the chances for success of your business.

To improve your odds of success

You should write a business plan to help you to beat the odds.

Most new small businesses don’t last very long; and most new small businesses don’t have plans. Increase the chance of your new business to succeed by writing a business plan.

To help you to keep on track

A written plan gives you a clear course toward the future and makes your decision-making easier.

Concluding

Not surprisingly, nowadays, are businesses without business plans, history.

A well researched and written Business Plan helps to get your business started the right way.

Read also: Business Plan: Competitors in the Market

Image: Pixabay.com

Note

Mike McKeever, 2012. How To Write A Business Plan, 11^th Edition, Nolo, 950 Parker Street, Berkeley, California 94710.