Why do you need a business plan? | SupportBiz

Managing Growth

Why do you need a business plan?

 
Preparing a business plan can be a laborious and time-consuming process. It requires a considerable amount of research and foresight in its preparation. In spite of this fact, business plans are necessary for a firm, for several reasons. The preparation of a business plan is not a futile exercise.

SupportBiz attempts to shed light on the various ways in which a business plan can help you, as a small business owner.

Raising finance

You need a detailed business plan if you wish to pitch your firm to potential investors, with the intention of raising finance. Banks and financial institutions would be interested in the nitty-gritties of your business, the hard facts and figures on paper, before they decide whether to invest or not.

Planning

A business plan helps you in decision-making. The preparation of a business plan requires you to think about the minutest of details about your firm, and take decisions regarding them.

Action plan

Once you have a business plan ready, you have a course of action ready for you. A business plan gives you an idea of what you want your business to achieve, and also forces you to determine the activities you need to undertake in order to achieve the same.

A benchmark

A business plan serves as a benchmark for your firm. It helps you identify any loopholes in your processes, so that you can bridge them at the earliest. It works as a reality check for your business, enabling you to compare actual results with planned results at any point in time, determining gaps, and resolving the issues that lead to such gaps.

Inspires creativity

A business plan can spark innovation and creativity. The process of preparation of a business plan forces you to think deeply about various aspects of your firm. It urges you to think of possible solutions to various challenges in your business.