Simple – the business plan is the blueprint for your business. You wouldn’t walk over to an reasons for a business plan lot and just start nailing boards together if you wanted to build a house. Yet unlike a house, a business isn’t static.
We often make the mistake of thinking of a business plan as a single document that you just put together when you’re first starting out and then set aside. Something to check off the to-do list and be done with. But in actuality, the business plan for any business will change over time as the business develops, and any particular business may have multiple business plans as its objectives change. Here are five good reasons why you should write a business plan when starting a new business.
Unfortunately, many prospective business owners are convinced that their idea for a product or service is a “can’t miss” proposition, and don’t take the time to do the necessary research and work through a proper business plan. The more you know about your industry, your prospective customers, and the competition the greater the likely hood that your business will succeed. Writing a business plan will ensure that you pay attention to both the broad operational and financial objectives of your new business and the details, such as budgeting and market planning. Taking the time to work through the process of writing a business plan will make for a smoother startup period and fewer unforeseen problems as your business becomes established.