9 Reasons Why You Need A Business Plan For Your Startup

Posted on Sep 16 2016 - 1:15pm by Editorial Staff

business-plan

You are at an exciting place in your journey as an entrepreneur! Starting your business is one of the best times, but chances are you are full of doubts and worries. This is common, and one of the best ways to combat the worries is to come up with a strong business plan.

A business plan for a startup business is similar to creating a game plan for your favorite sport. It requires collecting all the information needed to bring in the win. This requires setting overall goals, setting specific goals for a time frame, creating operations, evaluating products, and so much more. The business plan is your blueprint for your dream company. Without a plan, your chances of success decrease drastically.

A business plan is not a fundraising tool. The purpose behind it is not to gather the funds needed for your business, although finances are an important part of your overall plan. There are a lot of items you may place into the plan. Here are some things you can do with your business plan and why it is so important.

Organization

During this hectic time in your life, having a business plan is a great way to stay organized. It will help you remain on track and know what to do next. Without a plan, you can easily get off-target or forget the goal you are working towards. Your plan can include so many things, so don’t be afraid to include everything.

To Rent or Not

You need a place for your business. Your plan can help deal whether or not you will find another office building for rent as your business grows, or if you want to search for a place to purchase. Your growth prospect and plans can help you make this decision.

Confirming Your Numbers

Your math may sound great in your head, but things can when pen meets paper. Numbers rarely lie, so before launching your new startup, you need a model to project the ROI. This is also a great time to set revenue and profit goals for the next months and year. Your plan gives you a chance to think all of these things through.

Find Your Message

Every business has a message to help describe what you do and creating a realistic future plan. You may want to include where you want to be in five years from now. This is the way to write how to stand apart from your competitors. Having a message to tell others will come in handy when needing to write proposals.

Keeping Your Spouse Included

Whether your spouse is included in the daily workings of your business or not, it is important for them to understand your goals. A business plan allows you to share these priorities and strategies to reach the goals. Communication is key to a relationship.

Selling Your Business

If you want to sell your business at any time or look for investors, having a business plan helps the buyers or investors know why they should consider your company. You want to show why it is worth their money.

Sharing with Employees

When you work in a shared office space, it is important for everyone to be on the same page. Share your business plan with your team members. You are all in this together and won’t succeed without each other, so let them know what they are working towards.

More Employees or Not

As your business grows, you need to decide whether or not to hire more employees. Will more employees help your business or is streamlining a better option?

Counterbalance Emotions

Often times, starting a business is a dream, so it will involve emotions. However, emotions don’t always lead to the best business choices. You are also going to be exhausted and overwhelmed by the process. Having a plan allows you to step back and take a different look.

Photo by StartupStockPhotos, CC0 1.0

About the Author
Editorial Staff

Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.