The first question you should ask when starting up a business is whether you want to write a business plan or not. Surely, there are companies that decide that a business plan is not essential for the success of the business, but history proves that in the long run a business plan is very beneficial to the company. There are a number of good reasons why putting together a business plan is the right choice.
- A business plan provides direction; it makes you think about where you want to take the business, and defines what you want out of it. By addressing the objectives and goals, it allows you to meet them in a more efficient way.
- A business plan provides structure to your thinking, which helps to assure that all-important areas are covered.
- A business plan stimulates you to think about the future. It might help you in considering what you would do in certain situations. A good business plan helps you prepare your business for any situation. For example, it may include ideas for dealing with new competitors in your market.
- And, finally, a business plan will help you to communicate your idea, not only to financers, but also to (potential) employees, suppliers, and customers. As a communication tool, a carefully developed plan will provide something to which other people can react. You can use their insights to help you develop a more successful business.
An important aspect that has to be settled before writing a business plan is to choose the people who should take part in writing the plan. In order to create an effective planning document, every person who has responsibility for executing the plan should be heavily involved in its development.
In addition, it is advisable to contact consultants for further information about how to write a business plan. You might not know how to start, what to include and in what amount. Therefore, a consultant would definitely be beneficial since they are more experienced and have more expertise in this field. You could let an employee write a first draft, since they have essential internal knowledge about the business, but be sure to review and revise it. Therefore we ascertain that every business that is interested in creating a good “first impression” requires a business plan as an essential document. It may serve the purpose of attracting financiers, providing benchmarks that will serve as references, or refining and developing strategies for the business being conducted.
More info on Entrepreneurship coming soon.
Source: Swiss Management Center