If you are looking to start your own business, having a business plan is a vital part of planning, structural and long-term viability. For many entrepreneurs, the idea of a business plan is daunting, but recognize that a business plan is a strategic tool that breaks down long-term and short-term goals and plans to better understand the trajectory of the company. It communicates your vision to those you plan to serve, while clearly articulating how you plan to persuade customers and investors to use your services or invest in your company. Starting off with creating a solid business plan will increase the success of your business.
Here are four reasons why every business needs a business plan:
1. Your Business Plan Highlights Your End Results. Your business plan should highlight the end result. Working from what you have visualized for your business in the future will illuminate the steps you need to take to get to your goal in the here and now. “Begin with the end in mind,” Is a Stephen Covey quote that demonstrates the importance of starting with a big, long-term end result that includes visualizing the big picture of your business.
2. Your Business Plan Offers Clarity in the Details of Your Business. Now that you know what you want your business to look like in the future, your business plan will help you deconstruct the numerous tasks needed to create your business. This will include marketing, market analysis, long-term financial projections, and a description of your business product or a service you plan to offer. This is where more detail will help expand the effectiveness of your business. Understanding what the business plan will accomplish helps you plan these tasks and creates a solid foundation for your business.
3. Your Business Plan Will Serve as a Strategic Tool to Gauge Your Progress. Your business plan is a strategic tool that will assist you in gauging your business growth, key milestones, and assess when course corrections are necessary. A business plan allows you to reconfigure an original idea or operational system that has not yielded the results needed to reach your larger vision.
4. Your Business Plan Serves as an Informative Tool for Potential Partnerships. Your business plan offers an inside look to those you plan to work in partnership with in the future. These collaborators can include investors, property managers, landlords and business credit suppliers.
An effective business plan should provide an accurate description of your business for other business entities with which you plan to work.
Looking for more assistance in crafting your business plan? The DCSBDC offers workshops that teach the detailed process of crafting a business plan. Our business plan development workshops offer more insight in establishing the frame work of your business. Visit www.dcsbdc.org to learn more!