WHY WRITING A BUSINESS PLAN WILL SET YOU ON THE PATH TO SUCCESS
The road to starting a business takes more than just a good idea.
But combine it with a strong business plan and you’ve instantly translated your business vision into a strategy that’s ready for action.
Not only will writing a business plan accelerate your business growth, the firm foundation it creates will be a much better investment of both your precious time and money.
Writing a business plan is an essential part of this journey because it demonstrates you are serious about your product and service and intend to succeed.
And that’s a powerful mindset to possess, no matter what you’re selling.
Writing a business plan will set you on the path to success by:
1. Validating your business idea
Successful businesses are clear about why they exist and who their customers are. Clarifying these two essential steps is a vital ingredient in the creation of your business plan. From there we can work to identify your customers, customer segments, products and your value proposition.
With those elements in place you gain a natural competitive advantage over those who start a business with a half-hearted vision. Greater certainty brings confidence and confidence places you in good stead for future success.
2. Validating the financial viability of your business
We’ve all heard stories of people who’ve started a business with great enthusiasm only to burn out within the first year. The #1 reason for this is usually because they’ve not made any return on their investment.
Circumvent this scenario by writing a strong business plan that articulates the “why’ of your business and quantifies your projected financial outcomes. Even if your objectives are financially modest, just making a plan for how you expect things to play out, will highlight any potential areas of risk or loss.
3. Making your business more attractive to investors
Perhaps the most exciting reason of all to spend time working on your business plan!
Your business plan will help YOU feel more in control of your future by identifying a business roadmap and any potential risks and this clarity will increase your chances of attracting external investment.
Given that most new businesses need an injection of capital to get them off the ground, keep this in mind as you’re crafting your strategy. Ask yourself: What qualities would I seek in a business to invest in? Use your answers as guiding principles to create your own business roadmap.
I have decades of experience helping people make sensible and informed business decisions. Need help writing a business plan? Reach out to me for a chat: [email protected]