It is often asked by new business owners, “Is a business plan really important for my business?” In most cases they already know the obvious important reasons of business plans but they intend to avoid it because, it is not very easy to write one. However, it is also not impossible to write a business plan for your specific business. We think of all the important areas of a business plan that you wouldn’t think of. Let’s briefly have a look at the top ten important reasons of a business plan.
- It is a clear statement of your objectives and missions;
- It does an in-depth analysis of your industry;
- It is a portfolio of your potential customers;
- It describes the products and services you offer;
- It explains your marketing strategies;
- It does SWOT analysis;
- It explains your present and projected financials;
- It helps to grow your existing business as well as create a new one;
- It helps to back up your business loan application;
- It develops new business alliances.
Now, if you are creating a new business plan you must consider all the areas of a business plan or if you already have a business plan you should update your business plan in every 12 month in order to cover all the changes in your business as well as fulfilling all the important parts of the business plan. This will make your business plan more valuable and fulfil your purpose.
If you would like to know more about the importance of a business plan, please contact us for a free consultation with a Chartered Accountant.