Business Plan: The key to a successful company
Investors, entrepreneur and those who are starting a business might wonder, “Do I really need a business plan? Is writing a business plan really the best use of my time? The answer is almost always “yes”. A business plan is an integral part of starting a new business.
Writing a business plan may take a long time. It requires enough research data right at your fingertips.
Consider the study of 116 new businesses, presence of a formal business plan before starting a small business made no difference in the ultimate success of the business, assuming it was one that was not seeking outside funding.
On the other hand, one study found that entrepreneurs who wrote formal plans are 20% more likely to achieve viability than the otherwise identical non – planning entrepreneurs. Other studies have shown that while completing a business plan is not a guarantee of success, it does indicate that the type of entrepreneur who completes a business plan is also more likely to run a successful business.
These are 5 reasons why you should write business plan before doing anything else in your business.
1. A business plan is simply a must have for some business
If you plan to approach a consultant company for company setup, apply with Fairway Group. We do free consultation services and provide best business plan for small, medium and large enterprises. Potential investors and supporters want to see the true potential of your business idea clearly laid out in hard facts and numbers. A business plan is the best and generally, the only acceptable way to provide this information.
2. A business plan helps you make Decisions
There are some sections in a traditional business plan that you simply cannot complete if you are on the fence, undecided, or not fully committed to a certain point. Business plan eliminates the gray area because you have to write specific information down in black and white. Making thorough decisions are often one of the hardest and most useful parts of writing business plan.
3. A business plan can be a reality check.
Writing a business plan is really hard to a small business owner who wants to setup a new venture, but doesn’t want to consider that his or her business idea may be a bit flawed or is yet fully developed.
While this is an unwelcome and terrifying thought for an impassioned entrepreneur, identifying gaps early in the process give business owners a chance to shore up their research, test their ideas and take steps to make the business stronger and more viable. This may initially be a step back, but any and all further work can bolster the entrepreneur’s chance of success before he or she invests time and money in a business that is likely to fail.
4. A business plan can give you new ideas
Discovering new ideas, different approaches and fresh perspectives are some of the best things that can happen from the depths of the business planning process. Despite the, sometimes, negative reputation a business plan isn’t just long, stiff and structured document. In fact, an effective business plan is the opposite; it is a flexible, growing and dynamic tool that can help you think creatively and come up with new solutions for some of your toughest business challenges. This is especially true when you consider the Marketing Strategy Solution. Hence, as you create a blueprint for your marketing activities, creativity and fresh ideas are invaluable.
5. A Business Plan Creates an Action Plan
A business plan is a useful document for any small business owner. But when you use your business plan as a tool to help you outline action items, next steps, and future activities, you are creating a living, breathing document that not only outlines where you are and where you want to be but also gives you the directions you need.
Going back to the original question of whether you really need a business plan or not, you may still be able to build a successful business without a plan, but it is most certainly easier to do so with a well-constructed business plan on your hands.
Keep in mind that if you are using your plan as a true business planning tool, you don’t have to wait until you have all the answers to get started. You can create an outline of your plan now, filling in all the information you have at this point, and then work on the blanks as you learn more about the market. This type of fluid and flexible document can be invaluable to a new business.
For more on business plans, review this business plan outline. Then, for a quick and painless start of the business planning process, try this simple business plan template.