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Your written plan describes your business, outlines your goals and serves as a road map for future activities— everything from handling unforeseen complications to repaying borrowed money. It's a document that should grow with your business, undergoing constant tweaks as your big idea evolves from a concept into a successful company.
A strong business plan is essentially the cornerstone of your business, and yet many entrepreneurs drag their feet when it comes to writing one— possibly because it involves a good deal of work and may bring back childhood memories of writing a tedious book report on summer vacation. But it's critical that you not only organize your thoughts on how you intend to run your business but also formalize your plan in writing. Here's why:
* It forces you to identify your (and your company's) strengths and weaknesses. You don't want to start a company that is flawed before it's even in business. Sitting down, writing a plan, thinking about everything you bring to the table (whether that's a passion for cupcakes or an enthusiasm for medical software) and considering everything you're lacking (whether that's salesmanship or computer skills) can give you a realistic snapshot of your odds of success. Your goal should be to focus on your strengths and fix any problems that could hamper your growth.
* It helps you figure out how much money you'll need. Entrepreneurs chronically underestimate how much money they'll need to start a business. Keep in mind: a lack of capital is one of the top reasons why businesses struggle or close during the first year. Writing a plan forces you to get a handle on where your money will come from, where it will go and whether it will be enough— not only to get your business off the ground, but also to sustain growth in subsequent years.
* It gives you clear direction, which can help eliminate stress. As a business owner, you often have to juggle multiple roles— everything from bookkeeper to CEO— and that can leave you feeling distracted, disorganized and overwhelmed. A document that outlines your mission and plans for the future can prevent overload, help you set realistic goals, keep you on track and boost your productivity.
* It will serve as a resume when you seek lenders, investors or partners. Most lenders, and certainly any professional investor such as an angel or venture capitalist, will expect to see a business plan before giving you money. Even if you're not seeking outside money, a business plan can be helpful when renting space (a landlord might demand to see one) or seeking a business partner. For partners who start a business together, writing a plan ensures that everyone is on the same page when it comes to the company's mission and strategies.
* It makes you evaluate the market for your product or service and size up the competition. As you write your plan you'll research the current market and see how your product or service might fare against existing offerings. By analyzing your competition, you'll get a sense of how to price your product or service, how to target the right customers and how to make your company stand out, particularly in a crowded marketplace. As you assemble your business plan, you'll see opportunities to fine-tune your concept, avoid problems that could become disasters and ultimately increase your odds of success.
Topic starter
Posted : 08/04/2010 7:32 am
Re: why you need a business plan
The business plan is the blueprint for your business. You wouldn't walk over to an empty lot and just start nailing boards together if you wanted to build a house. Starting a business without a business plan is just as foolish. In actuality, the business plan for any business will change over time as the business develops, and any particular business may have multiple business plans as its objectives change.
Posted : 08/04/2010 10:55 am
Re: why you need a business plan
Hello,
The tips you have shared are really very nice and practicle. keep sharing your information like this.
Thanks for sharing
keep sharing
maclane
Posted : 15/04/2010 3:24 am
Re: why you need a business plan
1. Write out your basic business concept.
2. Gather all the data you can on the feasibility and the specifics of your business concept.
3. Focus and refine your concept based on the data you have compiled.
4. Outline the specifics of your business. Using a "what, where, why, how" approach might be useful.
5. Put your plan into a compelling form so that it will not only give you insights and focus but, at the same time, will become a valuable tool in dealing with business relationships that will be very important to you.
6. Review the sample plans we furnish and download the blank format to a MS Word document. Fill this in as you progress though the course.
Thanks for sharing and reading
Posted : 17/04/2010 6:53 am
Re: why you need a business plan
Hi
1. To prove that you’re serious about your business. A formal business plan is necessary to show all interested parties -- employees, investors, partners and yourself -- that you are committed to building the business.
2. To establish business milestones. The business plan should clearly lay out the long-term milestones that are most important to the success of your business. To paraphrase Guy Kawasaki, a milestone is something significant enough to come home and tell your spouse about (without boring him or her to death). Would you tell your spouse that you tweaked the company brochure? Probably not. But you'd certainly share the news that you launched your new website or reached $1M in annual revenues.
3. To better understand your competition. Creating the business plan forces you to analyze the competition. All companies have competition in the form of either direct or indirect competitors, and it is critical to understand your company's competitive advantages.
4. To better understand your customer. Why do they buy when they buy? Why don’t they when they don't? An in-depth customer analysis is essential to an effective business plan and to a successful business.
5. To enunciate previously unstated assumptions. The process of actually writing the business plan helps to bring previously "hidden" assumptions to the foreground. By writing them down and assessing them, you can test them and analyze their validity.
Thanks
Posted : 17/04/2010 10:55 am
Re: why you need a business plan
Hello
Thanks to all of you for sharing this information with us.
It is really an informative post.It seems beneficial.
To flourish a business we really need a sound plan
Keep sharing like this.
Thanks.
Posted : 19/04/2010 3:55 am
Re: why you need a business plan
Business plan allows you to articulate the vision, mission and goals of your business. It helps you be prepared for challenges and keeps you alert for current and future opportunities.
Posted : 19/04/2010 5:28 am
Re: why you need a business plan
Hello
Thank you for your nice and wonderful tips. keep sharing your nice and practicle views like this.
Thanks for sharing
i-m-jaddy
Posted : 19/04/2010 5:43 am
Re: why you need a business plan
As my suggestion Business plan is a most important entity in the business. It may contain background information about the organization. So business plan is your first step on the path to success. When you want to start your business business plan is a required.
Posted : 30/06/2012 4:53 pm
Re: why you need a business plan
Business plan is very important for start a new business.Thanks for sharing some valuable information with us.These information will help us to make our business perfect.
Posted : 04/07/2012 9:31 am
Re: why you need a business plan
Business plan is the most important factor of any business without it you van`t decide what to do next....
Posted : 04/07/2012 12:36 pm
Re: why you need a business plan
You wouldn't walk over to an empty lot and just start nailing boards together if you wanted to build a house. Starting a business without a business plan is just as foolish. In actuality, the business plan for any business will change over time as the business develops, and any particular business may have multiple business plans as its objectives change.
Posted : 06/07/2012 1:45 pm
Introduction
hi,nice stuff here it seems to be useful stuff for us guys
Posted : 06/07/2012 7:03 pm
Test, just a test
i m very great fan of your forum
Posted : 06/07/2012 9:06 pm
Re: why you need a business plan
The business plan is the blueprint for your business. You wouldn't walk over to an empty lot and just start nailing boards together if you wanted to build a house. Starting a business without a business plan is just as foolish.
Posted : 17/07/2012 3:42 pm
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