Why create a business plan?
Creating a business plan is the starting point for any business. A good business idea does not mean a viable and profitable business. A business plan creates a long-term goal, a final destination, a place you management and staff to aim for. If you know where you are going, you know the route to get there. If you aim for nothing, you most definitely will hit it!
The Purpose of a Business Plan
Create your business plan in the form of a roadmap, outlining:
- Business goals,
- Strategies for achieving the business goals
- Milestones and tasks needed to reach the goals
- Marketing strategy, who is being reached, and is this realistic in achieving a positive profit margin
- Financial milestones, where and how will the money be made?
Other than the practicalities of a business plan, a business plan is vital for investor meetings. Banks will need a business plan to approve business loans.
The business plans becomes the guide for your business’s growth, communicating your business vision to potential investors, partners, and other stakeholders.
Use your business plan to create a strategic path forward.
Strategically think about each aspect of the business such as:
- Financial
- Operations
- Legal
- Marketing
Creating a business plan creates clarity regarding how realistic your objectives and task list is, and highlights areas of progress.
Business plans attracts investors
A business plan explains to investors your business is about, how it makes money, and how they will receive a return on their investment. Investment is more likely to happen when it is clear that a business is profitable and well thought through.
A business plan shows you can think ahead and more importantly, are serious about your business.