Why You Should Put Creating a Business Plan on Your To-Do List
As a business owner of a small startup you’re busy, and this makes things like organization documents or other add-ons just seem daunting. While you may have started your business years ago, or even a week ago, it’s never too late to create or modify a business plan and it’s an absolute essential for many reasons. Even if you have to squeeze in ten minutes here or there working on it, take the time, because there are many important reasons why you should do it for the health of your business.
If you’ve already got an established startup business, then putting together a compelling business plan will allow you to further grow your business and branch out from what you currently provide. A business plan for an existing business acts as a plan of attack, allowing you to determine what your strategy is and where you should be spending funding and resources to grow your business in the right direction.
For those business owners who are trying to branch out into new avenues, that don’t have some cash or assets lying around, a solid business plan can be the difference between a yes and a no for a business loan. Banks, much like business, want to know what the game plan is, so they can be assured that they’re not taking an obvious risk, and that you as a business owner will be able to pay back the money that’s been loaned.
And if you’re a startup in its infancy? If you have a business plan, this plan can actually be an enticing or deciding factor as to if an investor is going to invest in your company or not. Much like banks, investors want to see the plan as to how you’re going to make a profit with your product or service. Why would an investor want to invest in a company with no direction? A business plan is a direction – a game plan for what you’ll be doing and when, and that’s just what investors want to see.
Even if all you’ve got is an idea of a business in your head, you’ve got a reason to write down a business plan.
You can use this plan as a blueprint for how you’re going to establish a business, what you’re going to sell and what steps you need to take to meet the goals and markers that you’ve set for your fledgling business. And it doesn’t have to be perfect – it is a work in progress. Business plans can be retooled, revamped and completely rewritten, depending on the circumstances.
If you start out making one kind of accessory and then change it up, your business plan should change too. Even if, after years of working on the business, you decide to sell, you’re going to need a business plan so buyers can see your vision and have a plan after taking over the reins.
So do yourself a favor: start writing a business plan. It’s got plenty of uses for a business owner, that there’s no excuse for you not to have one.