As a small business owner, you have a lot on your plate. It can be easy to let some things fall through the cracks. For example, many business owners fail to establish a business plan in the early stages of company development. This is unfortunate, because such a plan – even a simple one – can have an incredible impact on an entrepreneur’s ability to achieve their business goals. We’ve outlined 12 reasons having a business plan can benefit you.
12 Reasons Every Small Business Owner Should Have a Business Plan
How much impact does a business plan have on your business and why should you have one?
You give your team specific objectives.
One of your main goals should be to have everyone on the same page. With a business plan, your team will know what is expected of them, and you’ll know what to expect of yourself.
Identify what you need to make your business grow.
It’s difficult to know what you need to make your business grow without a plan. Create a specific plan, establish benchmarks and then figure out what you need for that plan to come to fruition.
It helps with tax planning/preparation.
According to Tim Berry of Entrepreneur, a business plan will help you determine your business valuation. This information is necessary for tax purposes or during the estate planning process.
Investors will want to see your plan.
Investors aren’t big on taking a leap of faith if they aren’t certain there’s a good chance they’ll come out ahead or at least even on the other side. Structured plans can help persuade investors to take a chance on your company.
A business plan can help you get a business loan.
Like investors, banks typically won’t provide business loans for companies without a plan detailing projected profits.
You’ll develop a better understanding of your market.
Creating a plan forces you to do a lot of market research. You’ll find out what it takes to succeed, what your potential customers are looking for and help you cater to those needs.
It will help you plan for rough patches.
Thinking of causes of potential rough patches or dips in your market helps you plan for them. Preparation can help you to navigate your way through those periods successfully.
You’ll gain clarity and be able to pass that along to your customers.
Why are you in business? What do you want to achieve? What services do you want to provide? The clearer you are on these things, the clearer you will be in your marketing efforts.
Your plan will inspire you and your team.
Thinking about your long-term goals and coming up with strategies to implement them is inspiring. The more inspired you are, the more inspired your team will be too.
Figure out how much money you’ll need.
Before proposing your plan to investors or a loan officer, you need to know how much money you’ll need. A business plan helps you come up with that figure.
You’ll be able to stay focused.
A plan keeps you focused on your small business goals and can help you avoid bad habits like procrastination.
It can help you create an employee handbook.
What is your definition of the ideal employee? What is required of them? This can be clearly defined in an employee handbook based on your business plan.
A Business Plan – the Best Way to Ensure Business Growth
At Thrive, our goal is to help businesses grow. To ensure that yours does, one of the best things you can do is establish a progressive business plan. Contact us for more information on what should be included in your plan. Our Thrive team will be happy to help guide your efforts.