The value of a business plan goes beyond garnering investments. It can provide you with a navigation tool to keep you on track and focused during rough roads.
A business plan is a powerful tool if you’re starting your own business or seeking to expand your current business. It can help secure funding to get your company off the ground, develop your product, and extend your market reach. Many investors won’t give your company a second look without a professional business plan, so it’s absolutely essential if you want to attract investment funding.
But there’s another side to the business plan: It’s your road map to help you understand your business and stay focused on your goals.
As the owner or founder, you need to know every aspect of your business. A business plan will provide you with a strong working knowledge about your company. It will give you the perspective necessary to spot potential pitfalls ahead of time so that you can be prepared. It will also help you see subtle connections and how you can use them to develop your business further. Plus, a business plan can save you lots of time, money, and hair pulling by determining whether your business concept is viable in the first place – or what hurdles you may encounter.
If you’re a new business or planning to expand into a wider market, a business plan is essential for understanding important issues such as who your competitors are and how you’re positioned against them. It also can identify whether a market for your product or service exists and how you can reach those prospective consumers.
If you’re not a numbers person, the business plan is a great way to get a nuts and bolts overview of your company’s financials, including:
- How much you’ll need to get your business up and running (or costs of expansion);
- What the day-to-day operations will cost;
- How much revenue and customers you’ll need to break even or earn a profit;
- Revenue goals for the long term;
- At what point you can determine whether your business is a success or whether you need to implement your Exit Strategy.
When we run our own company it can be incredibly stressful and emotional. Business owners tend to wear many hats: we are account managers, customer service reps, bill collectors, bookkeepers, communicators, coordinators, damage control operators, the list goes on … and that’s not counting doing the actual work we were hired for! It’s easy to feel overwhelmed from time to time.
A strong business plan will help you stay on track even when you’re swamped, mapping out your long-term goals and the strategies that need to be implemented. By providing key points on where to focus your energies, you’ll be able to handle running your business under pressure.
Interested in creating a business plan? Contact DA Copywriter or call 510-734-3040 to get started.