3 major benefits of a proper business plan
Business plans are something that have often, incorrectly, been thought of as what you create at the start of a business, essentially to use as a guide for the first few years and mainly to show projections that can help raise initial start up capital. Well, true enough you do need to create a business plan as a start-up, but a good business plan, like that offered by the ActionCOACH franchise, contains an invaluable well structured plan which will benefit any business owner throughout the duration of their enterprise. Here are just 3 major benefits of a proper business plan…
- Clarity & Direction – Clarity of vision and direction enables you, as a business owner, to set both short and long term goals. A business without well assessed projections and plans is just like the proverbial ‘chicken running around without a head.’ A proper business plan sets the strategic direction of the business and produces a robust plan for the next 5 years. Clearly defined goals that are understood by all departments of the business help to prevent unnecessary deflections from what may be a visionary path.
- Predictive Financial Modelling – A good business plan predicts future cash at the bank, profitability, equity growth and your businesses’ yearly marginal cash situation. It does this via real world inputs like… “What does the business sell?” “How much does it sell those items for?” “What are the costs to sell those items?” and “What are operational expenses?” etc. Clearly visible projections will always give your business a better chance to raise capital for expansion …and ultimately sell the business at the right price.
- It challenges the way you think – One thing that is absolutely inevitable is change. Projections and aims at the start of a business are bound to change as a result of trends and circumstances. Good business owners need to be flexible enough to make the necessary adjustments to their business. Business owners therefore sometimes need to be challenged to think differently. We need to become aware of the things we may not know. A good business plan helps business owners rethink their goals!
These are just 3 major benefits of a proper business plan – there are more! Whether you stand at the threshold of a new business, or have been a long way down the long and winding road, contact us to create a great business plan and find out about its many more benefits.