Various research has shown that businesses that adopt business plans do well than others without one. Some people think business plans are just for start-ups, or to back up loan or grant applications, or for getting investors. The truth is that business planning offers serious benefits to every business irrespective of its growth phase.
Business plans are like road maps, it is possible to travel without one, but it will only increase the likelihood of getting lost along the way. Your plan is a roadmap that steers you in the right direction
A recent study shows that businesses that plan grow 30 percent faster than those that do not. Another study shows that adopting business plan benefited existing businesses even more start-ups.
If you currently run your business without a business plan, you are losing out revenue/sales to your next-door competitor.
Your business plan is not a static but a living and dynamic document. You will need to review it regularly and adjust it to reflect changing industry conditions.
Business plan is a written document that describes a business, what the business plan to achieve, how the business plan to achieve its objectives and how to monitor progress.
Benefits of running your business with a business plan are numerous but we will consider some key benefits.
Business plan helps you grow your revenue and expand your business
A business plan shows how to increase revenue from existing customers, how to acquire new customers and extend market reach. The plan shows steps and marketing strategies required to expand the business and how to outperform your next-door competitor.
Business plan helps you to understand your business better
Writing a business plan can go a long way in helping you better understand your business, competition, and the market you are operating in more broadly, revealing consumer trends and preferences and other insights that aren’t always plainly visible.
Personal experience with clients shows they have better understanding of their business after going through the business plan writing process.
Business plan helps you set clear objectives and priorities
A business plan helps businesses set time-based measurable objectives in terms of specific number of products/services offered, number of customers, revenue growth, hiring that sales manager, or opening the new location. This document also specifies resources required to achieve these milestones at each point in time.
A business plan clarifies your objectives. It makes you aware of what should be done, when it should be done and how it should be done.
Business plans make business owners accountable and keep them on track
Since a business plan shows time-based objectives, business owners can review achievements with plan at each point in time. This process allows owners to reflect on why set objectives are not met and what extra effort or changes should be made to keep them on track in line with set objectives.
Business plan helps with critical decisions and to manage change
With good business planning process, you regularly review assumptions, track progress, and catch new industry trends and developments so you can adjust.
This process makes business owners quickly adapt to recent industry changes and helps them make timely critical decisions.
Business plans help to get cheaper additional financing
Lenders and investors want to ensure a good return on their capital while some grant providers want to ensure they are providing support to a worthy business. A business plan shows how revenue/profit would be generated and how cash flow would be managed.
Conclusion
Above all, a business plan is a living and dynamic document that helps you build a sustainable business. Every business, both old and new requires a realistic plan to run with.
You can contact us to help you prepare a customized and realistic business plan for your business.
Yes I agree, both new and existing businesses need a business plan to do well than peers
Yes I agree. Both existing and new businesses need a buisness plan to do well than peers.