Business plan development has two core purposes. Number one, to get funding from investors for the purpose of business growth and development. And number two, to have a roadmap for internal development and startup maturation.
A business plan is a guideline that helps startups & SME in meeting their objectives by keeping everyone on the team in the right direction. The business plan can determine your company’s growth in advance and how you’ll move in the market. This framework allows startups & SMEs to create competitive advantages, which eventually, will result in a profit.
Without further ado, let’s have a look at some of the main benefits of business plan development.
1. It is an action plan
Starting a business can look like an unconquerable mountain. But, when you create a business plan, the phases of starting a business are set in compact and less terrifying assignments.
Each of these smaller phases has its due date. It has persons that are responsible for making the phase happen. And every action that is necessary for the phase to finish successfully. And everything outlined in the business plan.
For those entrepreneurs that already own a business, a business plan will provide them with strong focus when they deal with business operations and pitfalls. And they will be able to face decisions in an organized, rational and methodical way.
2. With business plan development, you get a roadmap
When you finally start a business with the help of your business plan, that same piece of paper will be an indispensable tool that keeps you firmly on the road. It will also move you in the direction in which you want your business to go.
When you’re busy running daily company operations, it’s likely that you lose track of some of your business goals. Well, you can always rely on your business plan as your guideline. Your business plan will keep you concentrated and will help everyone teammate to understand company’s goals and what your business is all about.
3. A business plan is a performance instrument
Besides its function as a roadmap, a business plan can serve as a guideline that will help you to guide your business towards success. That is if properly implemented in your daily business operations.
When creating your business plan, it is very important that you set some realistic goals for your business performance. By doing this process regularly, you can keep track of your business performance. And it will be a lot easier to evaluate where your business goes. Which in turn, will provide you with the necessary KPIs that you need to meet on a monthly and yearly level.
4. You get to promote your business
Since the beginning of capitalism, one of the crucial things that you need to do for your business is to successfully promote it. Because without promotion, your business will not be able to secure funding from investors. And you will definitely not be able to make a sale.
Because investors can’t trust your words only. They need your business plan too and they need your financial predictions. They want to see their return in your predictions.
For a successful business plan development, as an entrepreneur, you need to review your business plan on a regular basis as much as you follow it. You will face some major decisions during your business operations. That’s why you have to be sure that you’ll have a guideline that will help you in your decisions.
For instance, when you need to decide whether or not to undertake a particular action. This action can change the entire vision and message of your business. That’s why you will look into your core vision and mission statement that are in your business plan first. If some decisions do not suit with your business vision and statement, you should consider discarding those decisions. Or on the flipside, if it’s a good opportunity, you need to adjust your business model and your business plan to it.
There are important questions that should be answered before starting a new company. Our business plan consists of 6 main areas.
Having a business plan is important because it will help you set realistic goals for your startup. It will serve as an excellent tool to secure investor funding and to establish the financial forecasts for your business and ROI (Return on Investment). To be considered as a strong candidate for receiving investment funds, you must prove that you thoroughly understand every aspect of your business. And to prove that you know how to create profit from it.
As a first-time entrepreneur that has a great new idea, we advise you to not jump into business waters without a plan. There are important questions that need to be answered first before you even start the company. The BizzBee team of experts is here for you to help you answer all those questions and guide you through the process of successful business planning.