Why You Need to Write a Business Plan
You may be excited about a great idea you have to start a new business. Perhaps in your current job you have noticed a need for a service that your employer requires to be successful. Or perhaps you have invented a new product or design. Whether you realize it or not, you need to plan for your business before going forward. Your business’s future success may depend on it.
While the rate of small business failures has decreased, experts still estimate that more than half of all small business will close within five years. The good news is that many of these businesses closed while they were still successful, and many chose to close rather than being forced to close. What these statistics show is that planning for business success is essential to beat the odds.
Advantages of a Business Plan
A business plan provides numerous advantages to small businesses including setting business objectives and serving as the business’s calling card. A business plan is especially important for obtaining financing, a crucial aspect of any small business. In fact, business experts note that lack of cash flow sounded the death knell for many failed small businesses. Ensuring that bills will be paid and supplies are in stock is critical for a small business working to establish itself before it is profitable. Therefore, before a creditor or lender will supply funding, it will want to review a professional and detailed business plan that specifies the business’s financing and market strategies.
Clarify Your Business
You may know exactly what you are sellingâ€¦but you may not. Will your coffee shop include teas? Will your pizza place include delivery? These products or services may seem minor when you start your business, but they could be market differentiators. They could make or break your business. For that reason, clarifying what products or services your business will market at the beginning is important so that you can properly estimate expenses and profits.
Identify Your Goals
Do you want to become the biggest player in real estate in your area? Do you want to create a niche market for your services? Different goals can yield different results. Your success may be defined by whether you achieve your goals, so properly identifying them is important.
Your Professional Calling Card
Your business plan will also serve as a professional reference for potential lenders, creditors and investors. You will want to present a clear and concise vision to these parties about the potential of your business, the financial outlook and the marketing strategy. Organization, consideration and detail are key to professional presentation of your business.
While writing a business plan requires effort, consideration and sometimes soul searching, a well-formulated business plan is a valuable tool for any business. Your thoroughness in this endeavor can convince wary investors or lenders of your dedication to your business goals. You can also provide them with concrete benchmarks to judge the potential of your business. Your business can benefit greatly in the long run from the consideration that takes place while you draft this document with a skilled attorney.
Preparing to Meet With Your Business Law Attorney
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