“if you fail to plan, you plan to fail”

Are you a start up looking to execute your dream? or looking to diversify your business? Or lost in the middle of your business journey? Or are u looking to up the ante of your growing booming business?

As business owners, it doesn’t matter how big or small it is if you run your business without having a clear business plan in place, then certainly you’re destined to fail. Sounds rude? Perhaps! But if you don’t bother where you’re going or you are totally directionless in your business, how can you plan to achieve your vision and mission.

A business plan ideally includes overview of the plan, a description of the business, market strategies, competitor analysis, development and design, ops and management, and financial information.

10 reasons why a business plan is a must

First of all, It’s a myth that a business plan is required only to predict the future. Rather, it establishes assumptions and sets expectations so you can manage the future conveniently along with course corrections.

The primary purpose of a business plan is to define what the business is all about or what it intends to be over a period of time. Clarifying the direction and purpose of your business will allow you to understand in detail what is required for forward movement.

Let us try to assess how and where a business plan really help

  1. To develop clearly defined Business objectives:

    Define particularly measurable & quantifiable objectives or business drivers like sales, web visitors, margins, cost involved or new product launches.

  2. Setting Priorities:

    Having strategy is good but prioritizing the activities is where and how the business plan will act as a solid foundation.

  3. It acts as a tracker:

    Milestones will keep you on track and the business plan also acts as a track of deadlines and dates in one place and certainly can celebrate on achieving important milestones.

  4. Stick to strategy:

    It’s really hard to follow a set routine and stick to strategy because there could be many distractions. Business plan helps to summarize the main & important points of your strategy. It will remind you again and again if you are deviating from your goal.

  5. You can’t do everything on your own, you’ll be better at delegating:

    The business plan helps to clarify and delegate who is responsible for what. Every important chore/ job/ project/ task should have ideally one person in charge to avoid any confusion.

  6. You can better plan and manage cash flow:

    No business can function if they mismanage cash. And simple profits are rarely the same as cash. A cash flow plan is a part of business plan in financial section and is a great way to tie together speculations on expenses, profits sales, costs, assets you need to buy and loans or debts you have to pay.

  7. Course corrections will keep your business from slopping

    Having a business plan gives you a positive way to be thinking and thus you are not reactive rather proactive about business. Never wait for things to happen. Plan them properly and keep updating.

  8. To support Investment decisions:

    If anybody wants to invest in your business or you want to put money for diversification, business plan is a must. Also, Investment decisions can be taken in the present with one eye on the future via a well-thought-out business plan. For example, if the most attractive growth route appeared to be selling the idea to a particular investor, the management and investment decisions could focus on activities that would increase the company’s attractiveness to that potential investor.

  9. To value your Firm:

    Valuation of your firm is always difficult and subjective, so a well-written plan will clearly highlight the opportunity for the incoming investors, the value of it and increase the likelihood of a successful exit or relinquishing some shares by the current owners.

  10. To support a strategic exit:

    You can never predict future of a business so the exit also has to be planned properly in advance. If you don’t have a set business plan then the exit becomes an issue for the business and the employees. The target will be to liquidate the investment, so the investors have the alternative of cashing out when they want.

What next? A realistic, rationally developed, well-documented and neatly presented business plan is bound to capture the eyes of many potential investors.

If you are looking for assistance on preparation or review of your business plan, reach out to us at www.smcorpz.com/contact-us/

Author: admin

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