Why Do You Need a Business Plan?

If you’re asking “Do I need a business plan…?” It’s likely that you do.  These documents help entrepreneurs set the course for their business ventures.  In fact, research is showing that those who write a business plan ahead of time are two-and-a-half times more likely to actually start their business.  In writing a business plan, you have to consider things like who will be on your team, where you will get funding, how to market your product or service, what competition you will face, and more.  This prepares the business start-up rather than allowing everything to take them by surprise.

Speaking of funding…If you’re looking for outside funding for your business, you are really going to need a business plan.  Most banks, for example, will not even consider giving you a loan until they have this document in their hot little hands.  The me is true for venture capitalists, investors, and even grant funding.  All of these potential funders want to see that you have thoroughly thought through your business approach and have the best possible chance of using their money wisely.

Unfortunately, most entrepreneurs are more than happy to skip this step.  They are intimidated by the very thought of doing all the research and writing involved in creating a business plan.  Even those that have already started their businesses and know they need a plan to foster growth or reach goals are still hesitant to jump in and try to write their own.

Our clients actually have the option of working with professional marketers and writers to put together both a business plan and a marketing plan that are tailored specifically to their organization.  If you’re working with a marketing company, you may want to see if they offer this service.  If not, there are business plan writing tutorials online or even classes you can take.

No matter what the approach, putting together (and following) your business plan makes good sense.