We all know our own business, right? So why on earth should anyone bother writing a business plan?
Starting Something New
One of the basic misconceptions about a Business Plan is about it’s fundamental purpose. It is not purely a description of what you do now. Rather, it is a description of how you plan to change your business, over the next year as a detailed plan and in outline for years 2 and 3. Sure, you have to describe where you are now as a baseline, and then build in all the aspects of the changes you want to implement.
So starting something new is the perfect time to put together your Business Plan as you can assess the impact the new development will have on your existing resource usage. How will it affect your cash-flow, staffing levels, marketing effort, use of capital, everything in your existing business.
And of course if you are a start-up, then a Business Plan is one of those essentials which enable you to fully comprehend the scale of your new venture.
Needing Help and Managing Growth
Any request for external help, and especially funding, will have to be supported by a comprehensive business plan which demonstrates to the potential funder that their investment is safe in your business.
Sometimes it’s necessary to take a step back from the day-to-day management of your business and assess where you are and where you’re going. A Business Plan helps you to focus on those strategic options which often get lost when you’re busy running your business.
Predicting the future is always a risky exercise, but it is something that every business has to do. No forward projection is going to be hard and fast, so a flexible business plan enables different scenarios to be scoped and plans developed, giving the business a head start.
And if you need any help developing a Business Plan for your business or planned venture, do get in touch.