There is no getting away from the importance of a comprehensive, well constructed and well thought out business plan. It can save a business a great deal of pain as well as revenue, and it can sometimes literally mean the difference between success and failure.
Let us share with you 4 huge benefits of creating a business plan as posted on the Patriot Software website:
1. You Can Get Outside Funding
`To get funding from lenders or investors, you need to show a business plan. Lenders want to see that they are investing in a company that will last and grow. You must give lenders a plan detailing the steps you will take as a business owner.
Even if your lenders are friends and family, it’s good to organize your ideas.
A business plan helps others understand your passion and see where their money is going. Communicating clear ideas to investors helps prove you can get your business off the ground and build it up.
2. You Gain An Understanding Of Your Market
`One key piece of your business plan is knowing how to conduct a market analysis. When you conduct this study, you look at your industry, target market, and competitors. You can see trends in decisions that could help, or harm, your business.
Another great benefit of a business plan is learning from someone else’s mistakes. Learning from other’s mistakes is less time consuming and financially burdening than learning from your own mistakes. The more prepared you are to deal with the aspects of your market, the easier it might be to handle issues down the road.
3. You Focus Your Strategies
`The entrepreneur in you is eager to dive right into business. But, having a business plan can help you pinpoint the best strategies for your company. Before you take the plunge into ownership, work out the important details.
This business plan benefit also helps you prioritize tasks. By looking at the big picture of your business, you can decide which challenges to tackle first. A business plan could also help you choose which tasks to address later.
4. You Can Check The Financial Numbers
`Business plans include financial projections for your company. While the projections are not a peek inside a crystal ball, they do represent a forecast of your financial health. Planning for expenses will be important for keeping operations steady.
Cash flow projections help you see if your goals are possible. They also point out trends that could potentially harm your business. The faster you spot upcoming issues, the faster you can correct problems.
Be sure that your projections match up to your expectations. Have you set aside enough money to do the tasks at hand? Double-check your numbers so you are prepared to handle your finances in the future.`
How WHR Accountants Can Help
There are many other benefits to a sound business plan. At WHR Accountants we can provide you with impartial advice and assistance on:
- The correct business structure for your needs
- Preparing a business plan
- Developing your business plan
- Sourcing grant and loan finance
- Setting up appropriate and efficient financial systems
- Taxation aspects of your business
For more details on our services get in touch with the WHR team on 028 3752 2909.