Have you been wondering why you are not achieving your business goals, or not gaining a competitive edge in the industry, or why your business is not expanding? Look no further! You need to look at your business plan… Or should I say, you need a well-prepared business plan?
One of the most relevant activities you can undertake as an entrepreneur is investing time, discipline and concentration in creating a well-structured business plan. Business plans are the roadmap to the future of your business, and it gives you a sense of direction and control of your business.
Why You Need a Business Plan
- Helps to Get Finance: If you want to woo investors, or get a loan from banks and other lenders, one of the major things you would be required of includes a thorough and well-researched business plan. Investors and lenders would not want to risk their time and money into an unprofitable and a failing business. These people must see how serious you are; they also need to know your business idea, and your expected profits and income streams; and understand your business finances, including managing cash-flow and determining your break-even point.
- Helps to Prioritize: A business plan is one valuable tool to reach long-term goals. It is prepared to map out strategies to achieve goals, after defining set objectives. Doing so will help you concentrate on the most important goals first, thereby improves direction. The planning process also helps you to consider potential hurdles in the path, so you can put a contingent plan in place to curb them.
- Helps to know the different forces and factors that affect your business: If you’re already in business, it helps you to step back and look at what’s working and what you can improve on. Instead of worrying about the future, a business plan helps to give you a sense of control over your business and your livelihood.
Review Your Business Plan
Business plans need to be up to date; therefore, a regular review is highly necessary. Successful businesses review and update their business plans when situations change. Setting out a calendar check to review and update would help you to
- remind yourself of your goals and priorities
- assess whether your strategies are working
- adapt to any new changes in your environment
- make the most of new opportunities as they come your way.
Reference
https://www.business.gov.au/planning/business-plans/writing-a-business-plan/why-do-i-need-a-business-plan