The idea of a business plan is something you hear often both in the corporate and small business world but do you know why it would benefit your business?
Like many business owners you would be forgiven for thinking that you are not big enough for a business plan and file it away along with all those other things we get told we “should” be doing.
But, a business plan can be a valuable tool for small and even micro businesses and here is why:
- Find your true north! A business plan gives you a structure for your goals and direction. It means that whenever you are feeling a bit wonky or unsure it will steer you back to where you need to be.
- Be prepared for financing. When you reach the point where you are looking for additional funds a business plan will mean you are already one step ahead of the game. Whether it is investors or a loan, you will need to create a business plan so better to do one early and not leave yourself with a big job at the last minute.
- Helps you figure out who you want to work with. A business plan may sound dull but it really outlines the bones of your business and includes important aspects such as your ideal client. Having all of this in one document is invaluable.
- Prioritise your resources. Have you ever got stuck in the dilemma of wanting “all the things”? Well a business plan can help you here too. It will create a sense of clarity around which of those things is most important right now whether that is IT, staff, assets or marketing.
- Nail your marketing. In addition to your target market, a business plan will also help you work out your point of difference or Unique Selling Point. Once you have these marketing basics down on paper it will be far easier to know what direction you need to take on the ground with your marketing.
- Charge what you are worth. When you are looking to set a price point for your product or service your Business Plan can assist here as well. As well as giving you an overview of your business it will assist you to work out how much you need to be earning to get to where you want to be.
So, a Business Plan suddenly doesn’t seem as dull any more does it? When you look at it in depth a Business Plan is the blue print of your business. Without it you are just playing a guessing game when it comes to your success and profit and that is never a wise thing to do in business.
