In this sense, the business plan is your safety net; writing a business plan can save you a great deal of time and money if working through the business plan reveals that your business idea is untenable.
Often, an idea for starting a business is discarded at the marketing analysis or competitive analysis stage, freeing you to move on to a new (and better) idea.
Writing a business plan is time-consuming, but it's essential if you want to have a successful business that's going to survive the startup phase.
If your business doesn't have one, maybe it's time to start working on one.
The process of writing a business plan can do wonders to clarify where you've been and where you're going.
What Is A Business Plan And Why Is It Important
Do you want to expand your business, be more competitive in your industry or achieve certain goals?Most new businesses need both startup and operating capital to get off the ground and without a well-developed business plan there is no chance of getting debt financing from established financial institutions such as banks or equity financing from angel investors (unless they happen to be family members or close friends).And established businesses often need money, too, to do things such as buy new equipment or property, or because of market downturns.The exercise of budgeting and market planning will help you define your Target Market, your Unique Selling Proposition, optimum pricing strategies, and outline how you intend to sell/deliver your products to customers.In addition, developing a budget for implementation will assist with determination of your startup and operating capital requirements.Unfortunately, many prospective business owners are convinced that their idea for a product or service is a "can't miss" proposition, and don't take the time to do the necessary research and work through a proper business plan.The more you know about your industry, your prospective customers, and the competition the greater the likely hood that your business will succeed.If you answered yes to any of the above, you need a business plan!Whether you've just started out or been running for years, business planning can be the key to your success.We've laid out three key reasons why you need to get started on your business plan today: If you're seeking finance for your business, you'll need to show banks and investors why they should invest in your business.Lenders and investors will only risk their time and money if they're confident that your business will be successful and profitable.