Are you a business owner? Do you want to start your own business or you have one running already? This piece is for you. Starting your business can be taking and challenging but you dont need to worry about every detail from starting to launch.
Want to know why? Read more.
Starting a business comes firstly in being an entrepreneur and the most important thing to put in place is business planning. A business plan is a roadmap for your business on how it will function, market and operate. It is the ultimate guide to having a successful business. The importance of business planning cannot be over emphasised but here are five reasons why your business needs one:
1. Seeking a loan or Investment
If you’re asking a bank, investor or venture capitalist for funding, they’re going to want to know that you have a good handle on your small business’s. For this you don’t need to write a 200-page document, but you will need something to hand over to convince prospective investors as evidence that there’s a market for the problem your business solves.
Your business plan should make it simple for potential partners and supporters of all kinds to understand your business model and financials. It’s even better if you’re able to present data visually through charts and graphs.
2. Minimises your risk
When you’re just starting out, there’s so much you don’t know about your customers, your competition, and even about operations. Creating and reviewing your business plan regularly is a great way to uncover your weak spots, the flaws, gaps, and assumptions made and develop contingency plans.
3. Clear and focus roadmap
A business plan makes it easier to get everyone on your team on the same page. You’ll be able to explain, in simple terms, how you think you’ll get from here to there.
Rallying your team to align toward the same priorities will increase your efficiency as a whole. You want everyone on your team to see the big picture and understand your larger goals.
You need their buy-in from the beginning, and as you progress, you want to make it easy to track and communicate on your progress.
4. Set KPIs and milestones
Every good business plan outlines SMART goals and milestones. SMART goals are:
When you create a business plan but skip attaching any KPIs , it wont help the business grow because there is no footprints to determine effectiveness. Use your business plan to set high-level milestones. Then use those milestones to create meaningful goals, and guide your sales and marketing strategies.
5. It makes your business sellable
Down the road, you might decide that you want to sell your business or position yourself for acquisition. Having a solid business plan is going to help you make the case for a higher valuation. Your business is likely to be worth more to a buyer if it’s easy for them to understand your business model, your target market, and your overall potential to grow and scale.
Let us help with your business planning and business needs. We are a one-stop digital platform that would cater your business needs. Starting a business comes firstly in being an entrepreneur and the most important thing to put in place is business planning.