Why should you write a business plan?
General Eisenhower said in preparing for battle, I have often found that Plans are useless, but planning is indispensable.
Most entrepreneur thought, writing a small business plan is a nasty phrase in their business. Most of the time 75% business owners do not make a business plan. But when they are trying to lift some money from bank and bank managers or officer ask about business plan then they sit and write a business plan but not for business but for gaining some money.
Business owners and especially young entrepreneurs avoid writing small business plans because
1. Do not want to write: Major argument about business plan. Many entrepreneur hate writing. They do not want to write a business plan. They think writing a business plan is a very difficult process.
2. They think they dont need a business plan.
3. They have not enough time to write a business plan.
But many successful entrepreneurs tell you that business plan is an important tool for a business. There are some reasons to have a small business for an entrepreneur.
Blueprint of a business
Business plan is a blueprint of a business. It tells you about your weakness and strong areas. It sets your vision and deciding whether or not to forge ahead with the idea. You can set a objectives and programs to achieve those objectives. So you can enable to make faster, better business decisions.
Define your market
Business plan simply define your product/service target market. It defines who your competitors are and what is your strategy to beat them in your market. So you have clearly defined your customer base and you know how to reach your customers
Cost benefit analysis
Business plan define cost and benefit ratio of a business. It tells your total cost of a business and how it affects a profit. It Convincing investors and lenders to fund your business. Enables you to be proactive, not reactive. And remember Investors pay particular attention to financial performance and measures
There are lots of benefits in planning. It is not about a business but also in life too. Writing clarifies thinking. We write plans down to clarify our goals and thoughts.