You have a business plan for the New Year right? Before you give me that “deer in the headlights look,” since you want to be prosperous and successful, there are many reasons why a business plan is a must. If you Google search the web for business planning, you will find dozens and dozens of reasons with some being minor reasons and others major components for a successful business. Note: If you are starting a business, your reasons will be quite different than if you are revising one for the upcoming year.
Overall, one of my past managers “Steve” always reminded me with simple rhetoric, if I “Failed to plan, that I planned to fail.” And that pretty much sums it up in one short statment. Practically speaking, the reason for a business plan is to write out your mission, state your objectives and goals, say how you are going to make your money and how you’re going to organize your company.
I know the thought of spending the time to create or revise a business is about as exciting as cleaning up the backyard to get rid of doggie do do! But from my experience over the past several decades, it can be rewarding to set up your plans and then monitor and watch your business grow as you reach your targets. I have included several key reasons for setting up your business plan, but be aware that this list is certainly not exhaustive by any means. However, it should serve to get your mental wheels turning albeit slowly at first.
12 Reasons for a Business Plan
To create focus of resources, tasks and objectives
To grow your existing business in the right directions
Establish a targeted marketing strategy
Allocate resources for services, staff and purchases
Required for business loans or investors
To create a new business and establish the right steps
Part of selling the business to understand worth.
Set up relationships with accountants, lawyers and consultants
Coordinate your business with alliances and partners
Share objectives with your team
Set up short and long term goals and objectives
Adjust your expenses and costs
A final note: setting up a business plan needs a bit of structure and there are plenty of templates on the web. Knowing how to set SMART goals; simple, clear, precise goals in a timely manner are key. SWOT marketing means that research is required for the marketing section of your business. This is necessary so you are able to execute a successful business plan using a competitive edge. Other than a DIY approach, I recommend using a professional or expert business coach to get the most out of this mandatory effort.