Every successful business starts with a good plan. Despite the importance of creating a robust business plan, many SMEs do not start out with a business plan or even consider implementing one down the line, which is understandable given the massive undertaking of setting up a new business – sometimes sitting down to write out a business plan is the last thing on the mind.
However, the importance of a business plan should never be overlooked – read below to find out why.
Direction
When creating a business plan, you set forth goals and a plan of action to achieve these goals, providing a company with the direction it needs to succeed. With business goals established, you can create appropriate strategies required to meet your objectives, which can then be analysed to see whether they were successful or not.
Funding
Going to any type of lender without a business plan is never going to end well. Lenders want a business to prove that their business is viable, that youbve researched the market, and demonstrate how you intend to make it profitable.
As a business plan helps to forecast your incomings, outgoings, and profits, which is not only needed to get a business loan but also helps to better manage going forward.
Growth
Many businesses are so focused on getting set up now that they donbt take the time to think about the future. With a good business plan, you can establish strategies for growth, plan for future investments, and know what courses of action to take to encourage growth going forward.
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