Here are some of them: There are several good reasons why you should strive to write a business plan, even if you think you do not need funding or you are not inclined to bring on more partners.Some of these benefits include: Having a business plan in place is a surefire way to convince investors to align their interests – and funding – with your enterprise.
However, if you intend to start up a corporation that may someday go international, employ hundreds of people, and get financial backing from the World Bank (or someone as financially strict), then you absolutely need a business plan.
But it’s not just about accountability and direction; several other benefits come with having a solid business plan that every entrepreneur can enjoy.
When you think about it that way, you will quickly realize that every entrepreneur has a business plan in one form or another.
The problem often comes when people start thinking of a business plan as a long, boring, academic-type document that can only be written and used by Ivy League graduates who truly understand corporate mumbo-jumbo.
A business plan is an essential apparatus that requires business owners to conduct regular reviews of their business, where it needs improvement, and where more time and resources need allocating.
Accountability is broadened by requiring business owners to “check-in” on their operations on a daily, weekly, or monthly basis.This often results is a haphazard slew of unfinished tasks, a chaotic view of goals and priorities, and a confusing, stressful business environment that is difficult to straighten out.A business plan clearly delineates and characterizes goals, priorities, strategies, and safeguards to ensure your venture gets off the ground and into fruition.Not every business needs to have a business plan, although, it is recommended that every business has a roadmap to guide its progression.If you are a freelance writer who has a copywriting business that makes a little extra cash on the side, then you can probably skip that whole business-plan-writing debacle without suffering too much damage.Strategic alignment is an imperative concept in the business world. For example, TJ Maxx sells discount clothing to budget-minded consumers, Sony sells top-quality electronics products to discerning buyers, and Five Guys sells premium burgers for food lovers seeking hot, fresh, and fast food.All of the companies above have successfully aligned their product and service offerings with their intended audience.Clearly articulated in the plan, cash and resources are handled, deposited, and invested by specific parties only.Additionally, inventory concerns, the purchasing of assets, and debt repayment responsibilities should be explicitly delegated to the appropriate company employee or officer to limit future problems and misunderstandings.Therefore, buyers may not make the connection that your company is associated with what they desire to purchase.Functioning to save future frustration, the strategic alignment methods put in place within a business plan remove any ambiguity and describe who and what your company is, the products and services it offers, and the customer base it caters to.