You have a great business idea, a lot of energy, enthusiasm and some cash to get started, that’s all you need, right? Business plans are so last year, and a complete waste of time and energy in a fast-changing business environment.
Well, maybe not and we’ll give you 10 good reasons why instead of rushing into things ,you should take a moment or a couple of hours to put your business plan on paper.
1. To clarify and refine your business idea! Because the moment you will start writing and thinking about it you will gain more clarity and insight on your business idea, the market you’re in, the resources you need and maybe some other aspects that didn’t cross your mind till that point.
2. To have a road map of your business! The business plan is not a static to-do list, but a road map that gives you direction for your business idea and once you begin to put it to paper, you are compelled to think about the long term plans and perspectives of the company.
3. To set specific objectives! And to map the activities that will help you to get there. Why specific? Because you will need to track them and do follow-ups periodically to check if you are getting closer to achieving them or if you need to make changes.
4. To see how much money you need to fund your business idea! All start-up entrepreneurs say they need money, the more, the better, but until you don’t write down your business plan, you can’t have a clear image over the exact amount of money you need in order to get started. Once you have a budget, you can start fundraising.
5. To start fundraising! Whether you are applying for a loan or seeking a business investor, your business plan is the most important instrument that will help you convince them to give you money. It shows that you know your business and that you already did the math. If you want more tips on money management visit THIS PAGE.
6. To convince others to join you! You may know that your business idea is the new Google, but you need to convince others that it is worth it and that they should back you up, regardless if we are talking about potential business partners, investors, lenders, clients or employees. The business plan shows that you take your business idea seriously, so they will be more inclined to do the same.
7. To gain a better understanding of your competition! When writing your business plan you will have to invest time and resources to analyze your competition in order to know where you stand and how you can better approach the market. All that insight will prove to be very useful when you get started.
8. To gain a better understanding of your clients! Who are they? Why are they buying? Why aren’t they buying? All these questions and the adjacent answers give you a deeper understanding of your clients and a starting point in beginning a relationship with them. For more insight on how to better manage your clients go HERE.
9. To evaluate the success of your business idea! The business plan gives you the possibility to compare what you initially planned with what you got in the end. It’s a benchmarking tool that helps you see what went right, what you should keep doing and what went wrong and needs to be changed.
10. Not to make the same mistakes over and over again!
For more resources on how to write your business plan read HERE.
Good luck in writing your business plan!