The Advantages of Having a Good Business Plan
Why do you need to craft a business plan? A good business plan is essential, not optional. A comprehensive business plan will help you achieve the following:
Grow your existing business;
- Back up a business loan application;
- Seek investment for a start-up or existing business;
- Create a new business;
- Put a value on the business for formal transactions related to divorce, inheritance, estate planning and tax issues;
- Sell your business;
- Deal with professionals employed to help your business — attorneys, accountants, consultants;
- Develop new business alliances;
- Share and explain business objectives with your management team, employees and new hires;
- Decide whether you need new assets, how many, and whether to buy or lease them.
Use it or Lose! Avoid the temptation to develop and write a comprehensive business plan, only to then park it in a drawer. Do not hide this important document away until you need a loan or an investor. Many people do that, ignoring this vital roadmap they’ve created for their business and shooting from the hip. Although some people can do that and achieve success – (Steve Jobs?) – most people cannot. Statistically, most people fare far better with their roadmap in hand according to SCORE, a nonprofit whose infographics recently found that having a business plan is one of four main reasons small businesses thrive. The other necessities according to SCORE are: professional experience, the right personality, and having mentors.
It’s OK to be different. Not everyone needs the same thing — in life, in love, or in business. Your small business plan can and should suit you. It can be in a traditional format, in outline form, on a white board or PowerPoint, etc. What is important is the process of creating your plan. This process forces entrepreneurs to think through all of the major aspects of their business and forces business owners to look at the difficult realities as well as the great possibilities they face. When it comes to succeeding in business, it is both the journey and the destination that is important!
For help with all of your business needs, big and small, please contact our office where our experience and will exceed your expectations and our “plan” is to help you succeed.
Sisa Colletti Vanelli