Reasons For A Business Plan
Tons of startups fail simply because the business owners/managers fail to think things through before plunging into the unknown. Business requires strategy, proper allocation of resources, refined approaches and squeaky-clean priorities.
If you want your business to succeed and grow over time, creating a business plan is a no-brainer! Every business needs it and there never seems to be enough lying around.
This is particularly important if you are seeking outside funding.
In addition to stating for what you will use the funding, you must detail the milestones you expect to achieve.
For example, show that the first ,000 will be used over the next three months to complete your prototype.
And then, you’ll use ,000 over the next month to complete beta testing. While in actuality, you might deviate from this timeline, knowing and showing investors your action plan and milestones gives you great credibility and better ensures them that their money will be in good hands once they invest.
Now your plan doesn’t have to resemble a color brochure, but it does have to keep readers interested. And include relevant statistics and facts that interest the reader and convince them to invest in your venture.
Maybe you have intellectual property that competitor’s don’t.
Most entrepreneurs and business owners write business plans for the purpose of raising funding.
Unfortunately, the vast majority of these plans fail; they don’t result in any funding at all.
Most small business owners are very busy and find it difficult to justify spending the time to write a business plan. A business plan gives you as small business owner the best possible chance to succeed in business.
In other words, a business plan reduces the probability that your small business will fail, like so many others do.