Wednesday, September 10th, 2008 | Business Plan
There are many reasons why your business should have a business plan. These reasons include test feasibility, securing funding, attracting investors, having the best chance of success, and ensuring your planning is more measurable and effective.
When you write a business plan it is the best way for you to verify if your idea for starting a company is going to be feasible. Writing a business plan is a safety net. It can help you save time and money. The idea of starting a business like selling mma equipment might help you realize it is a bad idea and you might want to move on to a product like diffusers instead.
Another reason you should write a business plan is because it gives you the best chance of succeeding. It will ensure that you pay attention to the operational and financial objectives of the company. It also narrows down into the budget, marketing, and other departmental issues. When you take the time to work through a business plan you have a better chance of having unforeseen problems. For instance, the business plan should include issues you might have with firefox extensions and other software you might need to function online.
A business plan is very helpful when you need to secure funding through a bank loan. The plan needs to be laid out entirely and be convincing to the bank that you have thought this thoroughly. You need to show how your plan will make money and bring in a profit rather than lose money. You have a better chance of getting money loaned to you from a bank when you are clear about every aspect of the business.
A business plan often helps manage the planning process and make the entire project more effective. This is because it is laid out with every department and aspect of the project in steps. It will set a base for a project that is easy to follow as a guideline. If changes need to be made this is normal for every business. However, you will better achieve goals set for the business when you have a well laid out plan.
The final benefit and reason why you need to write a good business plan is so you can be attractive to investors. Your company may be in need of funding from capitalists or angel investors and a business plan is the first thing they will want to see. This is your selling point if the document is well written. It will be scrutinized and you should be prepared to answer many questions. Investors may also want to perform background checks and a lot of analysis before they commit.
If you are thinking about starting a new business and you aren’t sure if it will be a good endeavor or not you should write out a solid business plan. This will help you see any holes or problems with the idea. It may also save you thousands of dollars in the long run if you decide against it.