Is your business plan a vision in your mind or a written document? A business plan is a written document that explains your business venture, goals, target markets, competition and financial forecasts. Having a written business plan allows you to share the vision with employees and stakeholders who can help you make the plan a reality.
Five reasons why you should have a written plan
To complete a business plan you need to conduct research into the markets you hope to enter and the target market you want to capture. Completing the research and evaluating your competitors will allow you to see if your vision will work for you. Keep in mind that the needs and demands of the marketplace and consumers constantly change.
Better Chance of Success
Writing a business plan is a process that you as the business owner should be involved in. During this process you will calculate risks and financial gains, which is a step ahead of someone who jumps right in. This will allow for a smoother start-up or expansion of your business and less unforeseeable issues.
All funding agencies, whether it is a granting program or a loan from a bank/organization, will want to see a complete business plan and financial forecasts. This allows the funder to make appropriate decisions regarding funding your business operations, and it showcases your passion of and investment into your business venture.
Effective Business Planning
Most entrepreneurs believe a business plan is only for start-up businesses, however, business plans should actually be reviewed annually. Reviewing goals and forecasts can help you see what has been accomplished, what changes need to be made and/or what new directions you should take.
You may believe an exit strategy is not important for start-up businesses, however, a successful business has long-term plans and one of those would be what will happen to the business in the future. Unfortunately you can’t determine what will happen with the business or you as the business owner. However, having a plan in writing could save you and your employees/family from a lot of hard decisions in the future.
Developing a business plan can be time consuming but will assist you and your business greatly in the future. If you have never written a business plan, seek assistance to ensure you have an effective and complete business plan that you can use as a road map and a tool to gain financial investments. If you do not have the time or resources to complete a business plan, source out a business consult who can work with you to complete it.
For more information on how KJCo can assist you with your business planning, contact us at 705.493.4525 or [email protected].