10 Reasons Why You Must Have A Business Plan in Hand
Have you ever started to drive without knowing where you intend to go? Your answer will be definitely no! Then how can anyone start a business without a well-written business plan in their hands.
If in simple words we define a business plan, then it is like the roadmap which can help you move towards your destination. Thus, how you
#1. To Set Up A Clear Goal For Your Business
A well written business plan gives clarity to the objectives on which it will run and helps put together the analytical structure to evaluate its working efficiency. Writing a business plan helps to cover all the elements of a business highlighting its strengths and weak points.
#2. To Define a Clear Role of the Managers and Other Staff
When you have a clearly defined business plan with you, you can decide on the responsibilities of each of the senior managers in the company. Also, other staff know and understand their role in the organization. If all the workers are aware of their responsibilities then the business can easily reach the targets it has aimed at.
#3. To Gain Better Understanding Of Your Customers
While writing the business plan, a thorough market research is a big boon as it helps the entrepreneurs identify the potential market. This also gives the insights and understanding of the customers’ behavior on how they make their purchasing decisions. This way you can devise a proper method to get their attention when you are there in the market.
#4. Seek Investment For Your Business
Each business requires some amount of money to keep afloat and expand with time. When all the elements of the business plan are documented in the right manner, it becomes easier to attract investors and convince them for the investment. Investment at the right time also helps implement the big idea to move to the next level and establish your brand value.
#5. To Develop A Proper Growth Strategy
Businesses are built around the strategies. At a single point of time a business must have multiple strategies in the hand to go from one to another depending on the success and failure of the strategy. A business plan gives you options of growth strategies which can be taken up for achieving the business sustainability.
#6. To Prepare for the Rainy Days
Ups and downs are the part of any business cycle. The graph never stays constant. Through a business plan you can prepare for the days when the market is slow and your business is not doing well. This also helps business to come out of the bad times to reach its goals continuously.
#7. To Seek New Collaborations
An organization which seeks to grow and succeed in its field can never achieve it without having a set of good associations. These associations can be with professionals or other organizations which help them deliver best quality services and products to their customers. A business plan which covers all the aspects of the business model also covers the points and milestones which act as the indicators for the growth of the organization. Also, these growth indicators bring in the opportunity to collaborate with the prospective businesses and professionals to achieve the next phase of the growth.
#8. To Develop The Business Specific Revenue Model
A single revenue model cannot work for all business types. Each business has its own unique selling point which requires complete focus. A business plan helps you to identify that unique point which makes your business different and you can then work to develop the business specific revenue model. A great revenue model ensures that you have enough funds all the time to meet the basic requirements for any addition for business growth.
#9. To Attract The Right Employees Who Share The Same Vision
A well written and clear mission and vision of the organization is like the super magnet which attracts that right talent towards your business. These talented professionals perform at their maximum potential at your organization because they too share the same vision as the organization. In fact the human resource is one key element on which the growth plan of any company depends, only after this other elements like marketing and sales come in.
It becomes very difficult for even the marketing team to market and bring in leads which is not converted by the sales team. Also, sales will find it difficult to convert if the operations team is below par.
#10. To Know About Your Competition Better
The day an idea is put to test in the form of a new start up, it starts to feel the heat from the already present competition in the market. A business plan includes the points and pointers about your close competitors. This helps you to develop a well thought plan to tackle the competition and emerge as the preferred choice among the customers in the same product range. This also saves you time and money for the hit and trails method to evaluate what clicks for you.
A business plan is very important to ensure regular inflow of the revenue. At the same time smooth functioning of the organization. It is up to you that you choose to write it by yourself or hire business plan writers to do it for you. They are well versed with the basic structure and components of the business plan. Any method is helpful till you have a good business plan in hand — not just any document to show.
So, if you still don’t have your business plan in place start making one.
I am Dipa Singha, a professional writer; my passion for learning and sharing also made me a Writer and an Entrepreneur. I believe every one of us should share our experiences with the each other as it helps us evolve and learn more. I write on topics which are related to technology, finance, marketing and management.Read Full Bio