Having a business plan will put everyone on the same page and prevent any misunderstandings early on.
A well-written business plan will provide your business with the structure it needs to run smoothly by laying out what your priorities should be and the actions you’ll need to take.
Writing a business plan requires you to meticulously research the market, which will help you learn more about what your customers really want, how much they’d be willing to pay, how you can attract them, and who your competitors are.
In the early days of a business venture when things are still new and exciting it’s easy to become so passionate about your ideas and plans that you fail to see the potential downsides and put adequate safeguards in place.
Starting a new business is always a bit of a gamble, of course, but during the planning stage it’s better to be realistic than optimistic.
“In my experience, the single largest reason a business plan fails is that those creating the plan under-calculate the time and cost that will be required for the plan to break-even,” says Boyer.“The principal purpose will dictate what section or sections are most important to your plan,” he says.“It should be clearly spelled out in the Executive Summary at the beginning of the plan.” Regardless of your business plan’s purpose, you’ll need to research whether your idea is fiscally feasible.Writing a business plan will force you to look at your product or service objectively and understand your strengths as well as your weaknesses.Any potential investor will want to know what they’re getting themselves into, how their money will be spent and whether or not you will be capable of pulling it off.For instance, if one of your goals is to have a certain number of new clients or customers by the end of the year, your objectives might include creating a customer referral program, revamping your website and blog, or hosting an online competition to gain a greater following on social media.If you want your business to succeed, it’s important to take the time to identify not only its potential and strengths, but its weaknesses too.Despite this, 40% of small businesses don’t have one, and 21% of Australian small business owners say they don’t have time to write one.Another survey of Palo Alto companies found that business owners with a completed business plan are nearly twice as likely to be successful when securing funding and growing their business.“Writing a business plan requires you to meticulously research the market, which will help you learn more about what your customers really want, how much they’d be willing to pay, how you can attract them, and who your competitors are.” With this in mind, if you plan to raise money to start your business, whether from outside investors or friends and family, it’s important to have a well-researched and compelling business plan that inspires confidence in your ideas as well your abilities.When starting your own business you’ll probably have a number of partners, investors and employees, and each person may have his or her own idea of how the company should be run and what its goals and objectives should be.