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Let’s Settle the Business Plan Debate: 3 Reasons Why You Really Do Need a Plan for Your Business


A business plan is like a blueprint for your business. Can you imagine a builder trying to build a house without a blueprint? Well, it’s pretty much impossible, and it probably would not work too well!

Unfortunately, many business owners start their businesses without giving a second thought to developing a business plan for the following reasons:

*Many owners did not intentionally set out to start a business, but kind of fell into it. Ex. Amy, who suddenly started getting sales request after innocently posting pictures of the outfits she made for her grandchildren.

* While others are generally aware that some type of plan is needed for your business, yet the process of trying to think and plan so far in advance often proves to be quite overwhelming-resulting in a winging it method of business operation.

So the question arises: Do I really need a business plan for my business?

Well the answer is yes!

Every business owner should some type of business plan, even if you are the only one who reads it! (i.e. you won’t be submitting it to investors).

Why?

Not only does the business plan help you clarify exactly what you need to do for your business, it brings to awareness any upcoming business needs you may not be aware of, and also helps with establishing long-term business goals.

Two Business Plan Options:

a) You can create a formal business plan or an informal business plan. A formal business is usually professionally done, extremely detailed and definitely required if you will be seeking investors or financial backing from a bank.

b) An informal business plan on the other hand, is self guided and helps to clarify the goals, processes, budget and marketing direction for your business.

Are you ready for the specifics of exactly why a business plan is needed? Keep reading to discover 3 Reasons Why You Need a Business Plan.

1. Moving Beyond Winging It – Laying the Foundation

The early stages of business can be quite an exciting time!

You have so many ideas, yet there is so much to be done—it becomes quite easy to get overwhelmed.

During the startup phase you also have a head swarming with questions such as:

  • Where will I operate my business?

  • What about policies on returns and cancellations or shipping

  • Exactly what products/services will I sell and how much should I sell them for?

  • What equipment will I need? And how much will it cost?

  • How long will it take me to complete a service or product?

  • How will I brand my business?

  • Do I need vendors? Distributors? Where do I find them at?

  • What social media should I be on?

  • Should I have a website?

  • What license or permits will I need

These questions and more can be thought through, and planned accordingly when you take the time to develop a business plan.

Taking time to plan out your business, will also elevate the stress and overwhelm you encounter when “winging it” or choosing to plan as you go”.

Your business plan not only gives you organizational control, but it allows you to take a birds eye look as each section of your business as it is being developed, and assess how it will all flow together.

Although the “winging it" method may work for some, I can tell you this, having a business plan is necessary if you want to build a strong foundation for your business to stand on that’s sure to last.

2. Gain Clarity

A business plan gives you the advantage of getting clear regarding what specific steps you need to take, what resources will be required, what results you are looking for, and approximately how long it will take for completion.

Keep in mind, your business plan not written in stone, but more like an evolving document.

As you get feedback from your market and begin to learn more about your industry, your business plan will adjust accordingly.

3. Set Goals & Objectives

A business plan can help you with developing the specific goals and objectives needed to develop and structure your business.

Developing specific goals and objectives for your business not only provides accountability, but it will also allow a method of tracking and following up.

I personally like to keep the number at about 4 annual goals, followed by 3 objectives. In your mind there’s so much to be done, so it’s really easy to go overboard here, however keeping it reasonable and realistic is the key.

Are You Ready!

While the completion of a business plan cannot guarantee success for your business, it will provide you with the direction, clarity, and strategy needed to grow your business into the successful venture you’ve always imagined it to be.

Are you ready to get started writing your own informal business plan?

CLICK HERE for an instant download of the Essential Business Plan Workbook for Creative Entrepreneurs!

Until Next time!......

xoxo

AJ

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