You wouldn’t start a journey without planning where you want to go first, so why would start a business without planning it first either?
When setting up your business, like with a journey, you need to know what you’re going to do, where you’re going to go and how you’re going to get there. Put simply you need to know your purpose, vision and strategy. This is the essence of a business plan and what it needs to cover.
Designed to give your business direction, it is a living document that evolves as the business develops. It should not be neglected or forgotten about. If you are ever looking for investment, investors will always want to see this document to gain an insight into your business and understand where you are heading with the business before agreeing to support you in your venture.
Reasons why a business plan can help towards success
- It provides clarity. Ultimately it needs to set out what the purpose of your business is. The sort of questions you need to answer include; what product or service will you be offering, what does the market look like, is there a demand? And so on. Answering these questions will help you and others understand what your business is about. You need to have a clear focus to make things work.
- It broadens your awareness. An important part of your plan is to consider any pitfalls you may come across along the way. If you are aware of them at the beginning, it makes them a lot easier to deal later down the line. Being aware of potential issues at this stage means you can look for solutions before they occur. Obviously, the more hurdles you can foresee and avoid early on the more likely your business is to succeed.
- It gives you a focus. Within your plan you need to set out what you want to achieve, these are your business aspirations. Do you want to achieve a certain amount of turnover in the first year, have reached a certain size in 3 years’ time or have gained a certain amount of market share in your fifth year of business? It’s all well and good wanting to succeed but you need relevant metrics in place in order to be able to measure it.
- It enables you to reflect. Having used your business plan to outline what your business’ purpose, vision and strategy is it’s really important to go back and look at what you’ve written. Your goals will change overtime, some will be accomplished, others may need tweaking and new ones will need creating. It’s a great way to measure how far you have come and see the progress you are making.
As eager as you are to get everything up and running with your business it really is important to take a step back and write your plan. In the long term it will be worth it!
Where can I get Business Plan advice?
At the Fabulous Group we can help you develop and write your plan so give us a call today on 0800 112 0880 or drop us an email to firstname.lastname@example.org and let’s discuss how we can help you.