Why You Should Write a Business Plan

Small Business

May 4

Start at the beginning - it seems like a pretty simple plan, right?

If you’re launching a new business (or are pivoting with an existing one), figuring out where to start might not seem so simple. Here are a few questions that might help:

➔ If it’s brick and mortar, where is the best location?

➔ If it’s online only, what platform do you need to sell your goods or services?

➔ What kind of licensing is required in your area?

➔ Will you need to hire employees?

The list can be endlessly overwhelming. But once you’ve decided to make your business dreams a reality, there really is a great place to start.

Write your business plan.

It might be tempting to just blow past the business plan stage and dive right into the nitty-gritty of getting your business on its feet. Writing a comprehensive business plan can feel like an enormous task.

A good business plan takes time, thought, and effort.

There are incredibly important benefits to really taking the time to develop a well-thought-out business plan, and those benefits far outweigh the effort required.

A business plan helps you outline exactly how your business will operate. Market research, developing a strong brand identity, and discovering the most effective pricing for your business can all be accomplished in the process of writing that crucial document.

Market research is the basis of any effective business plan.

You’ll get a good initial feel for whether or not your idea really is worth pursuing. If not, you may find that a few tweaks to your original idea could lead to a brilliantly successful venture.

A strong business plan is a foundation for success. With some research, you’ll be ready to develop your goals, objectives, financial projections, and operational logistics required to get (and stay) off the ground.

Each section of your business plan focuses your thinking on what you want to see in the future.

New businesses require capital.

If you don’t have deep pockets of your own, you’ll need to secure financing. Whether you plan to go to a bank to discuss a loan or would rather look for investors to back your venture, you’ll need to demonstrate WHY your business is a good risk for them. Your business plan shows how much forethought and research you’ve put into planning for a wildly successful business. Being able to show a good return on investment is key for securing financing of all kinds.

Personnel needs are also outlined in a strong business plan.

Maybe you can go it solo to start, but will need to hire new people as you scale your business. Or maybe you know that there are areas of business management that are just not your jam - and that’s ok. There’s someone out there who is an expert in areas you’re not as confident in. Knowing where your personnel needs lie allows you to hire the best possible people for the job.

The research and thought that goes into writing a business plan helps you uncover a comprehensive understanding of two different groups of people who will heavily influence the success of your business.

First, you’ll identify your target market. You’ll know who they are, where to find them, what they need from you, and more. Second, you’ll know so much more about your competition. If your target market is already getting what they need from a different entity, being able to differentiate yourself from your competitors is key.

The benefits of taking the time to research and develop a strong business plan are simply worth the effort. While it may seem like a giant undertaking in the beginning, it’s a key step in turning your business dreams into reality.