|
The Benefits
of Writing a Business Plan
Are you
currently in the process of planning to start your own business? If so,
have you written a business plan yet? Each year, because of a variety of
reasons a large number of individuals plan to start a business. Yet despite
the desire and motivation to run their own business, many don’t get off the
starting blocks.
One of the
reasons for the inability to get a business off the ground is the lack of a
clear thought process – the task appears so daunting that the idea quickly
fades away. One tried and tested method for developing ideas into action is
to write a business plan. But a business plan is useful for many other
reasons.
What is a
Business Plan?
Before
examining the benefits of developing a business plan, let's consider exactly
what a business plan is. Whilst they may come in different formats you will
find that all business plans have the same aim and that is to give a clear
idea and direction as to exactly what your business is or will be. It is
not only a roadmap for you but also for prospective bankers and financiers.
Is a Business
Plan a Large To-Do List?
Now that you
know what a business plan is, you can better understand the benefits of
having one. One of the key benefits to having a business plan is that you
will know what you need to do to get your business up and running. For
example, if you know what type of customers you will be targeting and how,
you have a better chance of success. In a way, a business plan for a start
up business (or one that is looking to expand) is essentially a to-do list.
A business plan will force you to think about the steps you need to take to
get your business up and running; it ensures you get your planning as
accurate as possible. A business plan is a great guide, especially if this
is your first time starting your own business.
Getting the
Bank Manager to Say Yes
Another
benefit to writing a business plan is that it can help you obtain financing
for your business. If you want to start your own business, but you do not
have the financial resources needed to do so, you will have to seek
financial assistance, either from the bank or even family and friends.
Finance though almost always comes from financial lenders or investors and
the thing about these guys is that they want to make sure they will get
their money back; therefore, they want to back a business that is sure to be
a success. If you don’t have a track record in developing and running a
successful businesses, then this is when a business plan comes into its
own. A business plan is really the only way (other than your sparkling
personality!) to convince a financial lender or investor that their money
will be put to good use and is safe in your hands.
Use a Business
Plan to Get a Better Sale Price
A business
plan is not just used to get your business up and running, it is also ideal
an ideal tool to use when selling your business. A business plan will not
only let an intended buyer know exactly what your business is or what it
does, but it will also help them understand exactly how it got to where it
is today. The successes or mistakes you made along the way can assist the
buyer in having a complete understanding of the business thereby allowing
them to pitch their price accordingly.
Even if you
have not got your business off the ground, you may still be able to sell
your idea based on your business plan and the research you have done. There
are a large number of individuals out there who have the motivation and the
financial resources needed to develop a business, but they just don’t have
the necessary day-to-day skills to do so. An effectively written business
plan can be the spring board to realise a good selling price for the core
idea of a new business.
As you can
see, there are a number of benefits to writing a business plan. If you are
serious about starting your own business it is an essentially and worthy
step to take. You will find a complete guide on how to write a business plan
in my e-book
‘The Secrets of Writing a Killer Business Plan’.
Robert Warlow
Small Business
Success
http://www.smallbusinesssuccess.biz
Robert runs a number of websites focusing on ideas and tips for small
businesses, and people running online businesses. Check out his websites for
free newsletters, e-books and articles:
http://www.smallbusinesssuccess.biz ,
http://www.smallbusinessloansecrets.com ,
http://www.marketingtipsandideas.com and
http://www.internetmarketingtipsandideas.com
|
