Do You Need a Business Plan?

Whatever your business is, it needs a business plan. If you’re looking for a return on investment of your time, money, and effort, it needs to have a written document that discusses what you plan to do and how you plan to do it.

A business plan usually starts with an executive summary which provides a quick overview of your entire idea. Then, you follow through with discussing your target market. It also must cover your competition, followed by your strategies and financial projections. Every business plan format is different. What matters is to effectively communicate the message. And to do this, remember to think about who you’re writing your business plan for. Then take it from there.

For business owners seeking funding or attracting deals, your business plan functions as a tool to convince investors/lenders that you know your business profoundly and you know how to profit from it. It’s how to evaluate if your proposal is realistic, given that it includes your objectives, goals, strategies, potential problems and solutions, financials, and management team.

Primarily, you as a business owner is the one to benefit the most from having a business plan. It is for you to have a better understanding of your new business/project and see it as a whole. This way, you’ll be able to design concrete plans, develop focus, set priorities, keep track of milestones and metrics, for your higher chance to succeed.

Overall, a written business plan is essential to keep track of your business — to assess your goals, your growth, and directions to be taken. So it’s basically where you want to go, what are along the way, and where you currently are. And it’s a continuous revision. Because as your business changes, your goals change, so your business plan also changes. Thus, it’s time-consuming. But having one can help you carry on with the different phases of your business. And having one can increase your chances to get your business to where you want it to go.