“Going into business without a business plan is like going on a mountain trek without a map or GPS support – you’ll eventually get lost and starve!”
― Kevin J. Donaldson
Often times than not, having a healthy customer base and being able to finance your recurrent expenditures make it difficult to see the need of having a business plan. But whether or not you believe it, there are many advantages you may never enjoy until you have a written business plan.
Think of a business plan as a road map, a blue print that gives you a clear view of where your business is; where you want it to be; and how to actually get there. Though there might be major and minor ‘adjustments’, you can rest easy that you wouldn’t get lost while trying to keep up with the ever-changing dynamics of the business world.
Still not convinced? Here are 3 benefits of having a written business plan:
A business plan validates your business idea
From your business name to logo, executive summary, market analysis, SWOT analysis, and financial projections, a business plan helps validate your business idea. Half way into creating the business plan, you may have to change certain parts of your idea not because they aren’t viable but because they aren’t sustainable.
What validating your business idea also does is that it saves you valuable time and resources that can be invested in other area should you decide to go live with your business plan.
A business plan increases your funding advantage
Interested in only investing in businesses that promise great returns on investment (ROI), investors always demand hard facts to prove that yours is one of such business. Being able to present a well-written business plan on demand helps secure investors’ attention. It also gives you a chance to convince them of the sustainability of your business idea.
A business plan prepares you for hard times
With constant changes in economic policies, customer preferences, and market prices, every business is certain to meet with hard times. Yours may not have happened but when it does, you had better have a written business plan.
This is because the SWOT analysis and financial projections in a business plan helps you forecast the problems that can threaten your business growth. It also makes you think of solutions that can be easily tweaked to solve problems when they finally show up.
So, regardless your reasons for not having a written business plan, you can start writing one right away. You can never go wrong with a business plan.