7 Benefits you can get from a business plan
Having a business plan is analogous to a ship sailing in an ocean with a good map, you can be rest assured that all things being equal the ship can’t miss it direction. A business plan is a document that explains what a company wants to do in the future and how it plans to do it. A business with a good business plan and with the right format has a tool that will make it outstanding! Therefore, the importance of a business plan should not be underestimated as it is the blue print of the business you are about embarking on.
What is it that will make you have the eyes of an eagle over your business? What tool best helps you to weigh your effort, to know the right action to take at any point in the business? Definitely, a business plan!
Having a business plan is like a warrior who has studied the movement of its enemy before embarking on a war with the enemy. Let’s assume a business has no business plan, the business might be breaking even, agreed! But the necessary elements of the business that ought to be under check may be falling apart without the entrepreneur knowing on time! Without a business plan you might not know your targeted audience, their culture, religion or social beliefs, buying patterns, economic status, etc.
If not checked, this ignorance of yours might be a hindrance to the business. This is just a bit of the things you might not know until you start preparing your business plan. To avoid half success in business, you need a business plan. If you don’t have a business plan you equally don’t have a decision tool. To have a good funding service you need a good business plan. I will talk more on why you need a business plan for your business with the following points.
These are the 7 Benefits you can get from a business plan
1.To navigate the prospect of the business. A business plan is a vital aid, for this reason it shouldn’t be overlooked. Securing potential investors, to fund your business should not be the major aim of you preparing a business plan. You sure need it for that purpose, but that shouldn’t be your primary reason! By drafting a good business plan, you seemingly have walked through the path for your business over a specific period of time.
With a business plan you have the tool with which to navigate your course of action in a specific direction which is pivotal to the success of your business. A business plan will propel you to identifying and meeting your targeted audiences’ needs and will put you in check to know if you are on the right course or not. A business plan also helps you to know how you to conduct yourself during the business to achieve your objectives.
2.It helps you to have an action plan: the engine room of any business is the action plan! An action plan tells you the step-by-step procedures you are to take to fulfil or achieve any set goal within a stipulated period. A goal without a time frame might be achieved but you would not be unable to grade yourself on how well you have done. An action plan details the actions to be taken right from the beginning of the business, during the business until the business plan for the next period is developed.
Therefore, by committing your plan on paper in the right format you will know all these. All your options and plans are well known and you are aligned to focus on key activities that are essential to the growth of the business. Your action plan will help you to assign task to any individual or group of individuals that will ensure such duties are performed within the stipulated period. Having drafted out your plan, you can then have a foresight of the activities that must be implemented for a business to progress. This is a major benefit you stand to get when you have a good business outline!
3. For the purpose of clarity and good understanding of your business: a business plan gives you an eagle’s eyes! It gives you the clarity you need right from the inception of the business, therefore pointing your attention to any difficulty that might occur with the possible action to tackle such difficulty. Having a good understanding of your business will give you an edge over your competitors in your method of delivery.
A business is still a failure until the services or products produced is accepted by the targeted audience. How then do you know the inside-out of your market? A well-detailed and comprehensive business plan is the key to such knowledge.
4. Organization: Implementing any of your agenda for a business by unconsciously skipping any part is a sure way of not making progress in business. This is not different from starting the construction of a building from the roof down to the foundation. But, with the presence of your business plan, you are organized in unveiling your actions!
You know the action to take in an ascending matter. You know which one precede the other and vice versa! It helps you to stay organized and remain on track. A business without a plan can easily change direction without you knowing. To remain on track and organized in actions you need a good business plan backed up with the right action plan. Thereby, helping you to focus on what the business is all about!
5. Securing funds: to have both internal and external source of resources, a good business plan is a tool to achieving such. An investor will like to know what he or she wants to put his or her money into. How will they know? It’s simply by your business plan. This will serve as a blue print of your business to any investor, being it small scale business or otherwise.
6. How do you manage your cash flow? Having a good business plan will help manage your cash flow, segregating your expenditures from your revenue to know your gross margin and consequently profits can only be known when the right business plan is in place. The driving fuel of any business is fund! How do you set goals on how to multiply your fund? This is answered when you have a good business.
7. Securing growth and expansion: how will you know if you are making progress or when to expand your business? A business plan is the tool! Growth comes when your cash flow is properly managed and expansion then follows. But without a business plan, you might not be able to have a yardstick of your business progress.
Therefore, a business plan should be drafted before embarking on any business. Don’t be like a soldier who left his gun unloaded with bullets before the war but started doing so at the war front! Sure, he was doing the right thing, but at the wrong place and at the wrong time.
Let your business plan be ready before anything else. It gives you a sense of direction! If you have no idea of how to go about it, you can
These are the 7 Benefits you can get from a business plan
Contact us at Dayo Adetiloye Business Hub on 0810 563 6015 or 0807 635 9735 for your professional written business plan of any industry of your choice.
A trial will convince you.
Written by Ikpoba Cosmos
Serial Entrepreneur - International Business Planning Consultant - Speaker - Trainer - Author - Blogger - Network Marketing professional
- Fellow, Inspire Africa Train-the-Trainer sponsored by US Consulate Lagos
- Fellow, Tony Elumelu Foundation Entrepreneurship Programme
- Top 50 Innovative Entrepreneurs, BET5 by Diamond Bank
He is an alumnus of Enterprise Development Centre (EDC) of the Lagos Business School (LBS), Pan-Atlantic University (PAU). Through his training, mentoring, speaking and coaching programmes, he has empowered many young people over the years to start and grow their own business, build wealth, create multiple streams of income and achieve financial independence.