May 10

Business plans: 5 reasons why every small business needs one

So you want to start a small business.

You’ve got a great idea. You’ve got passion and enthusiasm. You’ve even got a few key people ready and raring to join your team.

But hang on a minute. There’s something you’ve either forgotten about or ignored that’s vital to its success: a business plan.

Here are five reasons why you need a business plan for your small business.

The business plan—your roadmap to success

Like a lot of entrepreneurs, you probably eager to get started on setting up your new business. And writing a business plan will delay everything—by months in some cases. So, it’s easy to see why this step is often missed.

However, a business plan is well worth the time and effort it takes to put it together. Here are five reasons why a business plan is such a vital part of setting up your small business:

  1. It keeps you on track. It’s easy to lose focus when you’re running a business, especially if you’ve never owned one before or have limited managerial experience. By creating (and following) your business plan, you can be sure you’re doing everything you want and need to do.
  2. You’re less likely to take missteps. These can be anything from forgetting to stay on top of your bookkeeping to neglecting your payroll taxes. Having everything outlined in a business plan means you’re have a much better chance of keeping your proverbial ducks in a row.
  3. You’ll increase your chances of getting funding. If you still need funding from a bank or investors to start your business then you definitely need a well-prepared, highly researched business plan. They’ll use it to get an idea of the route you want your business to take, and to make sure they’ll get their money back.
  4. You’ll know if your business’ focus need adjusting. That new business idea of yours may seem like a no-brainer. But as you do the research for your business plan you may well come across some concerns that could make you change your mind.
  5. Your team will understand your vision from the start. A business plan is more than just numbers. It also includes your mission, and the vision you have for your small business. Making it available for your team to read will help them understand the role you expect them to play in your business.

As you can see, a business plan will play a vital part in your business’ success. But chances are you didn’t learn to write them in high school. If you’d like a hand with writing your business plan don’t hesitate to get in touch with us.

No matter how you choose to do it, make sure you do. The time you spend on it now will be returned ten times over. And you won’t have to spend it all worrying about your business.

It’s one of the best business investments you’ll ever make.