Whether you are opening a home based business or opening a company with hundreds of employees a business plan is worthwhile for several reasons.
- A business plan is a way of organizing all of your thoughts and ideas onto paper. This includes how much money is required, staffing requirements, location, and equipment needs.
- Your business plan gives confidence to your bank, investors, friends and family that you have consider all aspects of the business. Proving that you have crossed all of the “t’s” and dotted all of the “i’s.”
- The plan communicates your vision and goals, so that others understand the direction of the company, not just yourself.
- A business plan should be a living document. This means that you should not throw your business plan in a drawer after you receive funding, but rather use it as a benchmark for your business. At a minimum, each quarter you should review your business plan and compare your forecasts to your actual numbers and adjust accordingly.
- Most commonly, funding for your business. In today’s environment funding comes in many forms such as bank loans, investor funds, and friends and family.
These are just some of the reasons as to why a business plan is worthwhile. It has been said that a business cannot stand without a firm foundation. Start building your foundation with a business plan.