I remember researching to write a business plan for one of my elder brothers years back. I tell you, this is not exactly a fun ride.
You have to deal with numbers and it’s hard for a lot of entrepreneurs. It takes some detailed research and one has to pay attention to details to be able to write a workable business plan. Though writing one isn’t exactly a walk in the park; it definitely isn’t rocket science. It’s something you can pull off in a couple of weeks.
Most times, entrepreneurs are scared to write a business plan because of how tasking it could be. Or just because they are too lazy to do so. Maybe, they don’t know the need for it.
That’s why I am here, to provide you reasons to write a business plan before you embark on your business venture. Before I continue, let me point out that you are supposed to update the business plan periodically to match your more recent goals and to match market conditions.
Reasons to Write a Business Plan
1. For Clarity
When an idea is in your head, it is nothing but perfect. It could still seem so when you pen them down. In actuality, is the business idea workable? Is the business idea viable? Does the business have prospects? Does it fulfil a need? Don’t tell me. Start work on your business plan and some of these answers will become clear to you. That way, you can be really convinced about what you are working on. The goals will get clear and vivid. Once you get to this point, you are hitting something great already.
2. Understand Your Market
Who is your target market? I’m sure you must have thought about the target market and can give their demography. Asides that, what else do you know about your target market? In the process of writing a business plan, you get to understand your target market deeply. This will help you make better business choices.
3. To Stay Organised
When you have a business plan, you are more likely to be organised and remain on track. You will be able to work according to a plan. It will help you figure out what is important and to stay focused on it. I’m sure you know how important it is to be organised and focused. Distraction and paying attention to everything at the same time is a bad way to start.
4. Ensure that Everyone is on the Same Page
This is very important. Especially if you have a team or have partners. With a business plan, you will be able to make sure everyone is working towards the same goal. You will be sure that everyone understands the goals and visions. And that their actions align with your targets and goals.
5. Develop a Game Plan
There’s every need to execute and implement the ideas in the business plan. You will need to set priorities, establish goals and measure performance. With a business plan, you can do this. You will have a guide that directs every of your action.
6. Raise Capital
If you are looking at raising funds, which I believe you are. In order to scale the business, you will need money. No one will listen to you if you don’t have a business plan. A written and detailed plan helps you to let potential investors in on your goals and visions in a clear and compelling way. A Babson College study in 2007 found out that startups with business plans raised twice as much capital as those without a business plan within the first 12 months.
There’s the need to have the right attitude. You can do a lot when you are confident. When you have a business plan, the idea becomes clearer and this helps to shoot up your confidence. You see something to believe in.
Are they other reasons for which to write a business plan? Share in the comments section.