Why Having a Business Plan is Important

Posted by Leland On October - 8 - 2015 0 Comment

Starting a business can be tricky. There are a lot of factors that go into the process, including one of the most important: having a business plan. A business plan can provide crucial information for not only you and your clients, but also your employees and managers. It sets objectives and goals, how and why you’ll reach them. Writing a business plan will make the process of establishing your business that much more simple.

Here is why it’s important to write a business plan:

1.  Set Objectives

A business plan can set objectives for your managers. Without one, how do you plan to know what is supposed to happen? The plan provides guidance in this case, allowing managers and employees to understand exactly their job and purpose. As the business prospers, you can always return to this portion of the plan and reogranize.

It will take time to set this objectives–don’t scribble down some ideas. Take time to think through the meanings and objectives.

2.  Secure Funding and Investments

A business plan not only has to include words, it can also include numbers. You business plan may also include portions of your budget or strategies when it comes to funding. It’s a plan that will ultimately help you in the future, and something you can always return to when you get stuck.

At some point or another, you will face investment opportunities. Those investors will want to know your exact intentions and the opportunity at hand–that’s where your business plan comes in. The plan can include why investing in the business will benefit buyers.

3.  Overall Management

In its entirety, a business plan will help you with the overall management of the company. It should convey the structure of the business. While very similar to seting objectives and duties for your team and making sure those goals are met, make sure your business plan is something you can always refer to make sure you’re still on track.

4. Future Vision

Your business will change over time. Businesses evolve and employees must adapt. Factoring growth into the business plan is always key. It’s an effecitve way to maintain flexibility in the business while also ensuring that consistent goals are met. You will always have that starting point with the business, but allowing room for growth in your business plan will mean you’ll also have future goals to work towards.

About the Author: Lauren is a guest contributor from Lansing Economic Area Development (LEAP), helping area leaders in the tri-county region of Ingham, Clinton, and Eaton, Michigan with their businesses. LEAP helps businesses in the area start, grow, and thrive.

 

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