ENTREPRENEURSHIP / DEC. 14, 2014
version 2, draft 2

When to Draft a Business Plan

Whether you are in the process of a business start-up or looking to take your existing business to the next level, a business plan is essential in getting the business going. In simple English, a business plan is a written document that shows the future of the company. It includes all the plans you have for your business and how you plan to achieve the plans.

Here are the top five reasons when a business plan is strategic:

Before a Business Start-up

Successful entrepreneurs understand the need to draft the best business plans before starting any enterprise. They are well aware that investors use business plans to decide whether to invest with them or not. Therefore if you are seeking to have funds that will enable you have an easy time getting the wheels of your company rolling, you ought to write a good business plan. It gives the investors reasons to invest in your yet-to-start business venture.

During Determination of Business Objectives

Starting a business venture has so many facets to it. This includes target clients, location, size and reason for existence. The average human being cannot handle having all this information well organized in his brain. You certainly won’t be the first. The safest and wise thing to do is to put it into paper so that it serves both as a reminder of what has been done or needs to be done and get things more organized.

When Help is Required

Even established firms need a helping hand once in a while to propel their business ventures to the dream levels. Unavoidable circumstances may cause stagnation of any business enterprise. When this happens, the company may require a little (read a lot of) push in the form of cash. This is where a rewrite of the existing business plan comes in. The new business plan addresses the next stages of the growth of the business and conveys the mission and vision of the company to the interested parties that may want to invest in it. This push ensures funding for growth of the existing enterprise.

While Trying to Predict the Future of your Business

I have mentioned before the need to put the objectives of your company on paper. While it’s true that a business plan predicts the future, it is not entirely true. I know how confusing this sounds but hold on: I will explain what I mean.

Recall that a normal business plan captures the future of your business venture and brings out the plans laid out to achieve it. It is therefore safe to say that it totally relies on the best case scenario, that is, if all goes well as planned. Realize however that this is not always the case. Things go wrong and this is why you need to draft another business plan that addresses solutions to challenges that may occur in the future.

Through a thorough research of market trends, competitive analyses and sales forecast, you can predict shortcomings that may present themselves in the future and prepare for them.

 

You may be wondering how and where to start a business plan. A business plan is a great source to begin. Take your time to learn the step-by-step guide of writing a business plan.

Photo Credits: Photopin

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