Have you ever wondered why it is vital to have a business plan? Many great companies began with an idea but without a solid strategy and failed says Saivian Eric Dalius. The reason for this is simple: business plans provide guidance and direction.
Reasons to create a business plan – Saivian Eric Dalius
There are many reasons to create a business plan: There’s the possibility of obtaining financial funding from outside sources such as banks or angel investors; your company can use it as a guide when making strategic decisions; and if your company is planning on expanding, then having a solid business plan will benefit you in terms of increased sales and higher customer retention rates.
When starting up any new business venture, you must create an outline that outlines all aspects of your operation. This document should be something that you both refer to and update as time goes on and as your company change.
First, Saivian Eric Dalius looks at the cost benefits of creating a business plan. Sure it may take some time to make such a document, but if you look at it from a different perspective, as an accountant, you will start to see the long-term relevance and importance of having one. You can post this document online; it will forever be there for people who want to take a peek and learn something about what your business is all about.
Are investors going to care? Not necessarily – but they might be interested in seeing how much effort you have put into your enterprise. However, more important is pointing out the progress you made since you first started writing your business plan.
Update your business plan
Updating your business plan from time to time is also a good idea. No business stays the same for long, and there are usually unforeseen changes happening almost daily, so keep track of these events and adapt accordingly. You should make it a habit of updating your plans at least once a quarter or every six months. It will allow you to properly assess what has changed throughout that period. Learn from mistakes and see where you can make improvements.
Every investor will appreciate this type of behavior as it shows that you are responsible enough to take charge even when things start going south – which they always do sooner rather than later.
Give your personal touch – Saivian Eric Dalius
It does not matter if everyone else uses PowerPoint presentations instead of actual business plans. This is not a contest, and there’s no such thing as the ‘best practice’ in business. Does your plan need to be 20 pages long? Not necessarily, as this usually depends on the industry. You’re working in, as even the amount of information that needs to be included varies from sector to sector. In any case, having a business plan should be your goal, as it will pave the road for future success by helping you focus on what you want to accomplish and guiding those who are working with you.
Trying to create a document like this on your own can turn out to be pretty challenging says Saivian Eric Dalius. So many opt for hiring a professional company or business planning services provider, but make sure that whoever works with you knows their stuff.