Since a business plan requires a huge time commitment, it's understandable why you may have heard it described as “detailed,” “expansive” and even “exhausting.” Business plans can be all of these things, but there probably isn't a small-business owner alive who wouldn't add another word to the list once the exercise is complete: “This is no lead-in to a pep talk, but if it serves as one, it would be OK with the U. Small-business advocates like to say that a business plan is a must-have document for both potential business partners and investors.
But after contemplating the purpose, importance and actual contents of a business plan, you might agree that it's most valuable to the small-business owner who writes it.
Banks want to mitigate their risk of default and private investors, such as Angel’s, want a realistic forecast for when they will be reaping a return on their capital.
Small-business owners have been known to describe business plans in the most colorful terms. It has long touted a business plan as the foundation of a business – and you know what would happen to a house if it were built on a shaky, unreliable foundation.
This is a critical question to answer in writing, for yourself and your investors. This process is essential for raising capital for business and for effectively employing the capital.9. A formal business plan is the basis for financing proposals. The process of creating the business plan helps to minimize opportunity costs.
The business plan creation process helps you to determine exactly how much capital you need and what you will use it for. To reduce the risk of pursuing the wrong opportunity.
It may become your most valuable resource, so don't even think about filing it away – unless you file it under “N,” for “necessary.” Mary Wroblewski earned a master's degree with high honors in communications and has worked as a reporter and editor in two Chicago newsrooms.
Then she launched her own small business, which specialized in assisting small business owners with “all things marketing” – from drafting a marketing plan and writing website copy to crafting media plans and developing email campaigns.
To reposition your business to deal with changing conditions. Rather, your business plan provides a roadmap for your staffing needs, and thus helps to ensure smoother expansion.20. Through the process of brainstorming, white-boarding and creative interviewing, you will likely see your business in a different light.
For example, during difficult economic conditions, if your current sales and operational models aren’t working, you can rewrite your business plan to define, try, and validate new ideas and strategies.18. As a result, you will often come up with new ideas for marketing your product/service and running your business.