The Benefits of Creating a Business Plan
A business plan does not have to be a large 20-page document with tabs and appendices. Your business plan could be a few objectives jotted down somewhere, now this will not be enough to take into investors office but it is a starting point.
What are the benefits of writing a business plan?
You know what your business objectives are. They’re in your head, so why bother writing a business plan? Here are a few reasons why you should put together a business plan even if you’re already established:
- Secure Funding – brief notes aren’t likely to sway your investors, they don’t have the same passion you have for your business
- Gain a better understanding of your market – whilst putting your plan together you are going to research, you may think you already know your industry but advances in technology are changing industries
- Set clear goals – clear written goals will ensure you and your team are working towards the same goals
- Plan for bumps in the road – business environments are dynamic; the likelihood is you will face challenges your business plan will help you prepare for these.
What should my business plan include?
As a minimum your business plan should include:
- What your business does and who for?
- Description of your market
- SMART (specific, measurable, achievable, relevant and time-bound) objectives
- Cash flow forecast – based on research
How often should I update my business plan?
Your business plan should be updated as and when needed. You should be reviewing and updating your plan regularly. Its main purpose is to give your business purpose. The business environment is not static, so your business plan shouldn’t be either.
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