Do I really need a business plan?
Jan 7, 2019 | Written by Christina Simpson, ESQ. | 2 min read
Short answer, YES!
First of all, what exactly is a business plan? Basically, it is the written roadmap to your business. It's a document that lays out all of your thoughts, plans, goals, and inspirations as it relates to your business -- you know all those random thoughts and ideas floating around your head? Yes, those! Oftentimes we overlook the business plan, but you need to remember that a business plan is a very important initial step that must be taken when you are starting a business. Sometimes, the amount of effort and time you put into your business plan can speak to how successful your business becomes.
So, why should I make a business plan? Well, there are mainly two reasons why you should have one.
One: You will need a roadmap and guide while starting your business. It makes more sense to figure out everything you will need to do in the beginning, rather than as you go. Figure out what you need and answer any questions you may have AT THE VERY BEGINNING. That way, as you move forward with your business, whenever you have a question or are trying to figure out what to do next, there’s only one place you have to look: YOUR BUSINESS PLAN!
Two: Potential investors and/or lenders are going to ask for it mainly because, before they invest their money in a company, they want to make sure the owners have carefully thought about and planned for every potential aspect of the business. Even more importantly, they want to know if your business will be successful and how you plan to repay their money back, with interest. More specifically, investors and/or lenders are going to be looking for information like:
Do you have a mission statement? Do you have clearly defined objectives? What’s the purpose of your company? Who are you?
Do you know how much you will need to start your business? Have you outlined and calculated all potential expenses?
What exactly does your company do? Do you provide very specific services or products? OR are you all over he place?
What sets you apart from other businesses who are doing the same thing?
Do you have a thorough financial plan? Do you have sales forecasts and profit projections?
Do you know who your target market is? Who are your potential customers? Do you know who your competition is?
Knowing the answers to all of these questions are not just essential for the investor and lender, but it is CRITICAL to the success of your business. It is VITAL that you know the ins and outs of your business and everyone it in. How else will you be the best?
If you have questions about creating a business plan, need a business plan, or just need someone to look at an existing business plan, please reach out to me, here. I’d love to schedule a free consult!