You may think a business plan is not necessary and that you can just wing it. Rather than trying to steer the business in a direction that you discover as you go, you are much wiser to have a business plan in place. Having a business plan is important for new businesses and those that are established and trying to grow.
If you go to seek out help, they are going to ask to see your business plan to decide if they can help you or not. A business plan will not only push your business toward growth, but it’s needed for backing up a business loan application or seeking an investment. Here is a look at the many reasons that developing a business plan is so important.
Selling your Business
If you plan to sell your business now or in the future, it’s important to have a business plan in order to show what you are selling. A buyer wants to know what you have, why it’s valuable and how much its worth. Show them why they want it with a solid business plan for the future.
Getting Financial Help
When you apply for a business loan, the lenders are going to need your business plan before they will approve you for a loan. Show them what your business plan is and why it’s going to be a successful company. They will need to know this so that they can feel guaranteed to get their money back.
Your investors are going to want to know about your plans as well. They need to know what they are investing in and whether it is worth jumping on board with. Make sure the plan covers all the main points and shows them why it’s a business they want to be a part of as an investor.
Renting a New Place
When you decide to rent a new space, you are taking on a serious obligation at a fixed cost. Having a business plan that requires more space and has a guaranteed stream of income to cover the costs means that you are taking on this obligation with a plan in mind. Does your future growth justify renting out a space? Is the expense worth it right now?
Sharing your Strategies with Others
Your significant other, spouse or partner wants to feel a part of your life. When they don’t work with you, it’s hard to connect with you on what your business is like and how it’s growing. Having a business plan allows you to easily share a piece of your life with your partner in order to feel connected and show pride in the plans you have in place for your business.
When you have management running a part of your business, you must make sure that they know what you are requiring from them for success. Sharing your business plan helps your management to know when it’s time to pinch pennies, increase customer service or work on giving out freebies to attract new clients. Without a clear business plan, your management won’t know how to achieve your goals, organize or plan for their department and communicate it to their staff.
Keep these items in mind when you’re trying to decide if a business plan is necessary. It’s the direction your business needs to take and it’s the guideline for how you make all of your decisions now and in the future.