- Regardless of your expertise in the business and corporate world, writing a business plan before starting out is one of the most crucial steps in your journey for various reasons.
- You will actually be surprised by the benefits of having written it down prior to starting your business, finding investors, looking for the right group of people, etc.
- So in order to help you out and convince even more, we decided to list together 6 reasons to write a business plan because you will definitely need it in every stage of your startup.
When you’re in the early stages of forming a startup, you really need to have a business plan. It’s never too early to start drafting one up, and you’ll be surprised how many doors it will open. Having a solid business plan will keep you on track, allowing you to accomplish things efficiently. It also allows you to pitch your business more effectively. And among all of the reasons for you to write a business plan, we decided to give you 6 of the best ones.
1. You Need Structure
A checklist isn’t a strong enough guide to form a business. Checklists work for small things, but the large structure of a business can’t be confined to a set of boxes you can tick off. It’s far more complex, and you need to create functioning maps of how you intend to accomplish your objectives. Business plans should include a multitude of details, working from general to specific.
2. You Need Investors
You need capital to get your business off the ground. Whether you’re looking for investors or a bank loan, you need to come across as professional. Nobody is going to give you the time of day if you don’t have a business plan. Investments are a big deal, and nobody is going to fork over tens of thousands of dollars simply because they appreciate your charisma. Having a business plan helps you back up your pitch.
3. You Need to Know the Numbers
It seems absurd to work everything out down to the last cent, but that’s exactly what you need to do. By rounding off your estimates, you could be falling too short on how much money you think you need, and how much money you’ll actually make. Have you considered the small things, like reams of paper and printer ink? These things add up quickly, and drawing up a business plan will help you discover costs you may have overlooked in your initial estimates.
4. You Need to Research Your Market
What makes you different from your competitor? Why would those customers be willing to switch to you? What economic bracket does your target audience fall into, and will you be able to provide goods and services at a price they’re willing to pay? Market research is all part of your business plan. You may discover that you have some tweaking to do when you see it all in front of you in black and white.
5. You Need Logistical Clarity
You can’t even look at offices until you know how big you’ll need that office to be. Vastly overestimating raises your overhead costs to an unnecessary degree, and underestimating will lead to your employees working in broom closets. You’ll need to determine how much room your employees will need, how many employees you will have, and the rate at which you intend to grow before you sign a lease.
6. You Need to Measure Your Accomplishments
When your business is new, you’ll be working very hard. Even the smallest victories feel like a huge relief. It’s easy to get caught up meeting tasks moment to moment, and when you do that, you lose sight of your measurable objectives. Writing these things into your business plan will give you a better handle on the amount of progress you should be making, as well as helping you develop the timeline in which you need to complete your objectives.
Take time to write a business plan. The more thorough your plan is, the more likely you are to see the success you want to see. Even if it takes a few months to prepare your plan, you’ll be grateful down the road.