Many business owners think business plan as a tool for getting funding where in fact it is a straight road to your business’s future.
So, let’s take a look at the obvious reasons why you must have a business plan and what they mean for your future success.
1. Business plans are a baseline for monitoring your progress.
Keeping track of your business progress shows you how your business is put together and gives you a control to the business’s fate.
And of course, a business plan is a sales and recruiting tool for courting key employees or future investors.
2. Writing out your business plan forces you to review everything at once.
With a proper plan, you’ll end up spotting connections you otherwise would have missed.
Such as value proposition, marketing assumptions, operations plan, financial plan and staffing plan every little detail is out the at your view.
3. A business plan is how you drive the future of your organization.
For example, when you write, “We expect 100 customers by the end of year one,” it’s not a passive prediction-you don’t just wait for the customers to show up.
It becomes your sales force’s goal.
A business plan lays out targets in all major areas: sales, expense items, hiring positions and financing goals.
Once laid out, the targets become performance goals.
4. A well-written business plan is great for attracting talent.
When a prospect asks to understand your business, you can hand them your plan that gives them an entire overview.
Plus, it also helps you understand your business hence you can deliver the results you promise.
Great employees will respond to that message.
As will banks and investors the next time you need to raise money.
5. A business plan shows your flaws which give room for improvement.
When you’re the founder of the business mean you are the only person holding you accountable to those results on a daily basis is you.
For example, if your prototype was to be complete by February 1, and it gets done early-on January 10, you can ask yourself why?
What you learn will help you do an even better job next time.
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