Business Planning is crucial in turning a successful business idea into a successful business especially at startup phase. Many people argue that you don’t need a business plan to start a business and quite often people steer clear of business plans for fear of the level of work that goes into writing them. However writing a business plan does not have to be something too difficult or complicates it just need to be something that can be used to help give structure to your new idea.
Here are a few reasons why business plans are so important when starting a business:
- They can help you to remain focused on the core goals of your business and to evaluate the steps you need to take in order reach your goals. By writing down your vision it makes it easy for you to keep track of your growth as you accomplish successes along the way.
- They help to secure future finance and possible investment. Unless you are very lucky and win the lottery, or perhaps meet someone who just wants to give away their money (if you do meet that person please send them my way) you need a structured financial plan. Cash Flow Forecast, Break-even Charts and a budget are just a few aspects of a straightforward, yet necessary financial plan.
- Plans help to keep you organised! It just makes sense to have all the key areas of your business laid out in an easy to read format which you can refer to whenever you need to remind yourself why you started your business in the first place.
- A well written plan can guide you through difficult times – allowing you to see which areas you can work on when the going gets tough.
- It is a working document which grows and changes as your business grows. A plan is never static and thus will change to suit your changing goals and standards so don’t feel restricted by a business plan.
You don’t need a huge budget to write a fully functioning business plan but you do need to use it. If your idea is to have any hope of doing well it is important that your plan remains a working document and is used for everything from research to funding.
However don’t make the mistake of becoming so engrossed in the planning of your business that you can’t become active in the “doing” of your business. One has to strike a fine balance between planning and action in order to see true results come to fruition.