When people are thinking of starting a business, one of the most frequent advices that they receive is to have a start up business plan. Well, this is undoubtedly the most valuable piece of advice that a newbie entrepreneur can ever get, because having a plan plays a crucial role in every kind of business.
But sadly, not every newbie entrepreneur realizes the significance of a well written plan and hence tends to ignore this well meaning advice. Here are 3 great reasons why a business plan is essential for any attempt at entrepreneurship.
1) For Finance and Investment
Any business will need at least a minimum amount of investment or finance to support the costs of the new start ups. If you have already some funds arranged for this purpose in your savings account, then there should be no problem.
But if that is not the case and you are planning to ask somebody to invest in your business or maybe apply for a business loan, then the first thing that you will need to furnish is a solid plan. Unless and until you have this ready and fully prepared, do not even dream of getting a loan sanctioned or an investor to show interest in your business.
2) For Business Development
A properly crafted plan will help you foresee the developments and challenges that are coming up in your business. This picture will help immensely in making adequate preparations and gearing up to face the challenges. Having a plan for the next 2-5 years, makes you fully equipped to handle your business in a systematic and efficient manner.
3) Lesser Chances of Failure
Many business start with much fanfare but end up in the bin within a short span of time. While there may be a variety of other reasons for failure, one of the most common reasons is- not having a business plan to begin with. In short, you are insuring your business from failure and untimely death by crafting a business plan. A business plan may not be a golden ticket to business success, but yes it can definitely ensure that you are prepared to face any obstacles that may crop up along the way.
Now that you realize how important it is to have a plan, you may be wondering how to create one. You can always use a free business plan template for this purpose.