Why write a business plan

Writing a business plan before starting a business reduces the trial and error factor.

It can help you avoid costly mistakes. The more you put into your plan the more you get out of it.

A good business plan will tell potential investors – be they banks or family and friends - the following about your business:

  • Where is it based
  • Who is going to do what
  • Where it’s going, and when
  • How is it going to get there
  • How much money it needs to get there
  • What makes it likely to succeed
  • What threats or disadvantages it must overcome

By using your business plan to prioritise key tasks you can also use it to plan your cash flow. It’s vital to know how much you need to spend and when – be it on premises, staff or stock and equipment. Each business plan will be different – but just in emphasis. All business plans should explain the proposed direction of the business. A good business plan should allow you to

1. Check your numbers

2. Focus your thoughts and give you a step by step guide

3. Allow you to measure how you’re doing

4. Communicate your ideas

You have done your research, so you know your stuff. All you have to do is put it down on paper, in a form others can understand quickly, easily and clearly. This is not easy but well worth the effort. Compared to actually making the plan happen – writing it is easy.

The real challenge with starting up your business is actually doing what you said you’d do, at the cost you stated, with the results you planned. So having got this far, why give up – Go for it.

Find business plan tips and templates HERE