What is a business plan…

A business plan is a formal statement of a set of business goals and the plan for reaching those goals. In many cases, business owners don’t have a formal plan but rather a general business strategy that’s not written down.

…and why it’s important

Keeping your business plan in your head will result in key components being overlooked.

Formal business plans can organize your strategies and market research. Business plans help you communicate your vision to employees and external parties. It is also necessary to forecast the future of the business, how resources will be allocated, identify potential problems that may arise and how to mitigate your risks. It can also help you realize how far your business has come from planned versus actual performance.

Business plans are not only necessary for new ventures. Established businesses will find a formal business plan very valuable.

A well-developed business plan can double your chances of obtaining a loan, acquiring investment capital, making a major purchase, recruiting a new team member, thinking more strategically and growing your company.

As your business continues to evolve and your circumstances change, update your plan. Many assumptions you once made can be replaced by actual figures. These figures will influence your action plan and financial projections.

If you are planning on exiting your business in the coming years, a business plan will help you develop a strategy to transfer ownership, sell your business, or close your business.

Some business owners are often too busy working in their business than working on their business. In such cases, it is ideal to employ the services of qualified business experts to improve your business’ performance.

To learn some business planning tips, check out this article from Expert Enough.

Source: Noor Shawwa, ExpertEnough.com


Inderpal Gill, Firstbase Business Services

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