Many business owners see a business plan as being a way of acquiring funding for their new venture. They should realise that the real power of the business plan is in steering your business forward for many months or even years into the future.
What’s the reason for having a business plan?
Your business plan serves a critical purpose in your organisation. It helps you to focus your efforts and enables you to spot potential pitfalls. It also allows you to set realistic targets and to measure and track the growth of your business.
A good business plan enables you to structure and monitor your business, as well as recruit the right level and calibre of staff.
However, even when they have been written, most business plans do tend to end up in someone’s drawer. This completely defeats the original purpose and will not serve any benefit to your company.
Entrepreneurs need to communicate their business plans to all parts of their organisation and to their staff so that everyone is motivated and working to the same goals.
The Business plan is an important document and should not be reserved just for the eyes of management only – all employees should understand and be aware of the opportunities they have as well as any threat to the business.
Businesses which are well-established tend to use a business plan every month to realistically analyse whether or not they are on track. A business plan allows you to consider detailed market research about your competitors, so you can fully understand where your business is heading.
The benefit of having it written down is that it focuses your mind. It’s also
extremely motivational to write.
More importantly, in periods of financial ‘squeeze’, it also allows you to say no to certain opportunities which come your way.
If an offer is not exactly in line with your business plan you should say no as you can easily become sidetracked and unfocused.
That said, every business plan needs to be flexible.
A business plan is also a good way of making people in your business accountable. It can be written simply on a single sheet of paper to focus your mind, or as detailed as a 70-page report dealing with all the strategic issues in your business.
So, if you’re planning for business success, get out that sheet of paper and get started.
Article provided courtesy of Business Exposure Group