Do you want to know 3 reasons why you need a business plan? A business plan is your blueprint for business success. Starting a business without one is like building a house with no materials. It just doesn't work.
Unfortunately a lot of entrepreneurs shy away from writing a business plan because the idea of planning so far in advance creates anxiety, but it doesn't have to.
Studies have shown that while completing a business plan is not a guarantee of success, it does indicate that the type of entrepreneur who completes one is also more likely to run a successful business.
In the words of Alan Leiken, “Planning is bringing the future into the present so that you can do something about it now.”
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Here are 3 reasons why you need a business plan.
1. Helps You Create A Sense of Clarity
The purpose of a business plan is to create a sense of clarity with regards to the long-term objectives of your business.
When we are unclear about the vision, purpose, and goals of our business, we are left floundering. You can't expect to achieve success if you don't have a plan for getting there.
Do you get in your car without knowing where it is that you are going? Probably not.
Think of a business plan as if it were a roadmap for your success. It helps you analyze and determine how you will set your business up, where you are going, and how long it will take to get there.
2. Helps You Manage Your Cashflow
The ability to manage cashflow is one of the most important components of entrepreneurial success. Without cash, your business won't survive. Philip Campbell, the author of Never Run Out of Cash, says that, “Poor cashflow management is causing more business failures today than ever before.”
Having a business plan will help you better manage your costs, sales, and business expenses. Not only that, but it will allow you to make financial projections for the future of your business.
3. Helps You Map Your Future Success
A good business plan helps entrepreneurs create a roadmap for achieving their goals. Without a solid plan, how do you expect to get to where you want to go?
Putting your long-term vision on paper allows you to better understand your business and the specific courses of action that you need to take.
This is a great opportunity to ask yourself the important questions that need answering, early on, so that you can create the momentum that you need now and into the future.
As Jeff Hoffman, co-author of, SCALE: 7 Proven Principles to Grow Your Business and Get Your Life Back, likes to say, “Your business plan is more about the questions you ask and get yourself to struggle with, than it is about finding the ‘right’ answer.”
These are 3 reasons why you need a business plan. Every entrepreneur needs one. If you haven't written one already, I encourage you to do so. It is the first real step on your journey to long-term business success.
Do you want to learn how to create a compelling business plan? CLICK HERE to join my Online Business Mastery Accelerator program!