Entrepreneurs who wrote business plans performed a lot better than many of those who did not. Why? Putting your business ideas on paper and being able to review and improve it subsequently, a more structured and organized way of starting your business, inviting investors, and securing funding are just a few of the compelling reasons why you have to write one. Well, some successful entrepreneurs did not write business plans but you have a better chance of success if you have one written.
Business feasibility assessment
When you put your business ideas in writing you can go back to it to review your concept and business model, evaluate your options, or assess whether your proposed business will really be feasible. Doing these from mental notes would be difficult as you will tend to forget important facts or ideas. Sometimes it will be downright hazy.
A written business plan can be comprehensive, containing all relevant and critical details about your enterprise. It is your road map to a successful business three to five years from your starting point. In the market analysis part of it, you have to list down important data gathered from your research about your industry, market, and competition. You also have to list down your marketing strategies and tactics as well as details of your implementation plan. You have to show some projections of your sales, expenses, and expected profit under different business scenarios.
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One of the more important reasons why you have to write a business plan is the need to present one to potential investors or sometimes strategic partners. More than the projected sales and profit, prospective investors would be keen on knowing how well you have studied your target market, how potential customers would accept your product or service, and what sort of management team you will organize. Some investors or partners would like to see also a statement of your business philosophy and corporate mission.
You may have secured commitment already from investors but you may need additional funding through banks and financing institutions. You need to prove to them in writing that your business is feasible and it can actually generate revenues and cash flow that can assure them that you can pay back your loans.
After you shall have started and operated your business, you will periodically review its performance. Have you successfully followed and implemented the business model you had conceived earlier? Have you explored fully the potential of the market you had studied? Are your customers buying your product or service? Are sales and expenses as per your financial projections? If not, you can always go back to your business plan, which is your blueprint in building your business, and see what adjustments are needed. For one, the marketing strategy and sales plan will require periodic review and re-alignment with the current realities of the market.
Who should write your business plan
You should write your business plan – ideally. But if you cannot do so for some reasons like not knowing how to prepare it, or not having time to do it, or simply not having the knack for putting down things in writing, then have a professional with a demonstrable experience in writing a business plan and, more importantly, a significant experience and starting and running a business do it for you. These professionals may cost a little bit more than ordinary business plan writers or a software but it is your business’ roll-out success which is at stake here.
Whoever writes your business plan, you should be the one providing the essential facts and figures, offering unique insights, and doing all the actions behind the business plan.
A business plan cannot guarantee success of your business. But it can lessen your chances of failure.
Our company has the experience and expertise in writing business plans. We certainly welcome your inquiries on how we can help you.