Why a good business plan is not just for start-ups
It is a popular misconception that creating a business plan is something that one does at the start of a business, essentially to raise start-up capital for your venture. While it is absolutely true that when you start a business a good business plan is needed, in this article we examine why a good business plan is not just for start ups.
What is a good business plan?
Essentially a good business plan is a well thought out, strategically designed plan for your business over at least the next five years. As a start-up, you will do your projections and give potential funders as much clarity on the potential income of the business as possible. It also sets out your vision and goals for the business and so, in essence, you start out with a blue print of the business you hope to build going forward. “So” you say “This sounds like something you only need at the start of the business” Well, on the contrary a proper business plan does much more than this and is something that can help your business throughout its duration. Here are just three good reasons why…
It is an active management tool
When putting together a business plan that is all just goals and projections many businesses neglect the fact that a properly constructed business plan is also a management tool and should assist you in the day to day running of your business. It should include things like; the planning and management of cash flow; enable you to make more informed decisions about short and long term goals and, through true understanding of the capabilities of your business and employees, enable expansion in the right areas.
Provide a crystal clear overview
A good business plan helps you to find out what you don’t know about your business! Who are your key people and what are their duties and responsibilities? Understanding the interdependence between different parts of your business helps you to better manage and delegate to your people and make vital decisions regarding the holistic progression of the organisation. Simply put, a good business plan ensures that the head knows what the heart is doing!
On-going financial growth and assistance
As a new business owner you will soon discover that your initial start-up capital loan will probably not be the only time you will seek funding. Expansion in any area may well require additional funding. A well managed business, with a progressive attitude of expansion and a well documented track record from start-up, will assist ‘Angel’ investors with a proper evaluation and greatly enhance your chances of success. A good business plan will give you this.
So these are just three good reasons why a good business plan is not just for start ups. As a start-up, or a business that is well past its infancy, a well constructed business plan, such as that being currently offered by the ActionCOACH franchise, is an essential business tool. Contact us to find out more.