The Business Plan – Why Write One?

Posted on by Prapti

A detailed business plan should be done whether you intend to start a small home‐based business or

launch a larger company. Many businesses, small and large, fail to thrive because the owner(s) did not

have a clear picture of how to start, maintain and grow their business. A well researched business plan

will give you the tools you need to understand every aspect of the start‐up phase, how to find your

target market, financing options, etc. It also enables you to see if your original idea needs to be changed

completely or perhaps slightly altered. Being prepared for future challenges will contribute immensely

to your success and growth.

Most people have heard leaders of large corporations use the term strategic planning and assumed it

was a phrase that was exclusive to big business. No matter what the size of your new business, strategic

planning is essential and can only be achieved through writing a well thought out and detailed business

plan. Since one must conduct research, collect relevant data and then analyze all the information

gathered about a particular industry before writing a business plan, owners will be able to see all its

strengths and weaknesses. It is by far the best way to see if your strengths and skills match the industry

you wish to go into.

A well structured business plan is an excellent way to entice prospective employees, future partners,

secure investment capital and of course is essential in obtaining grants and loans.

A thouroughly researched business plan is also considered to be a vital management tool. Every

professional business plan will be altered and adjusted as your company grows according to the

changing business environment. By reviewing the accomplishments and goals that have already been

recorded you will be able to review your progress and plan for future growth.

Your business plan should be designed to prepare for possible future complications and obstructions for

which you can provide proactive, viable and innovative solutions. When you have a company with

employees it is often the front line workers who most readily identify problems and provide suggestions

for solutions. With this in mind, many successful entrepreneurs understand the value of sharing their

business plan with employees to gain valuable insight about the company’s current situation and

possible directions for the future.

“Why do I need to write a business plan” can be effectively summarized by three of the vital areas that

every business plan covers:

• An essential means of communicating with financial institutions, government and other sources

of business grants, potential investors and employees.

• A management tool that helps you to evaluate your current business situation, apprehend your

accomplishments and modify the business plan as circumstances change.

• An instrument for planning and indentifying challenges and devise innovative and viable

solutions.  13

At first, writing a business plan can seem overwhelming, but the following sites will help get your

started:

• http://www.sba.gov/smallbusinessplanner/plan/index.html

• http://www.leadership‐tools.com/business‐free‐plan‐template.html

• http://www.myownbusiness.org/s2/#3

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