5 Reasons You Should Write a Business Plan Today
There are a variety of benefits to writing a traditional business plan that go beyond receiving outside funds for your start-up or new project. The process of writing a plan will benefit you before you launch your business, as you're launching, and even years post-launch. Here are a few advantages to writing a business plan:
1. A plan will help you secure funding!
It should go without saying that a business plan can play a crucial role in the acquisition of funds and loans to kickstart your business or expand it. While traditionally, a business plan has been designed to help business owners receive funding, it isn't a required focus and there are other benefits.
2. Develop clarity when it comes to your vision and business goals.
As you write your business plan, you'll need to craft a concise, impactful vision and mission statement. These are integral to your business as they encapsulate what your brand is all about. These should tell your market in a sentence or two what to expect and why they should support your brand.
A plan will also create an avenue for you to map your short and long-term business goals. This will help you understand and prioritize what steps are needed in order to reach those milestones as a business. This ensures business objectives are clear.
By polishing your brand identity and crafting clear business goals, you'll be setting your business up for success.
3. Eliminate baseless assumptions.
A business plan is a great vehicle to help transform business-related assumptions into educated guesses. This is imperative when it comes to your financial projections and funding request. When recording and analyzing your financial projections, you'll need to think critically about your cashflow, revenue, expenses, and profit. Doing so will strengthen your funding request and your pitch to lenders.
4. Gain an important understanding of your market.
It's important to include a Market Analysis section on your business plan, which requires you to showcase your industry knowledge and present any conclusions based on thorough market research.
If you haven't conducted any official market research, that's okay, too! This is where your business plan may help you gain a better understanding of who your market is, where they are (online and offline), and what they're interested in. By outlining your targeted customer segments, you'll begin to learn how you can reach them and why they'd be interested in what you have to offer. This knowledge also strengthens your pitch to lenders.
The Market Analysis section will give you an opportunity to explore your industry market as well as your competitors. Analyzing what works and what doesn't work for them could offer valuable insight for your own marketing strategy and brand.
If you didn't have a clear understanding of who your ideal customers are or how you're going to reach them you definitely will after writing your business plan.
5. Useful for correcting your course.
A business plan presents a unique opportunity for you to set a clear course for your business. With your goals and vision in front of you, you'll be able to identify weaknesses in your business' projected path. This allows you to re-adjust, correct your next steps, and head toward your business goals with ease.
As you can see, there are more advantages to writing a business plan than simply securing outside funds. A plan will ensure you're equipped with a well-crafted and polished brand identity, marketing strategy, and will set you on the path to achieving your business goals.
Don't know how to write a business plan? We're here to help! Contact us to inquire about our business plan writing services.