Do You Really Need A Business Plan?

March 16, 2009 by Charly Leetham
Filed under Business Planning

: Image by Raymond Yee via Flickr

What is the benefit of a Business Plan? There is an awful lot of work involved in creating a Businss Plan – and is it really worth it?

Well, I think the proof is in the pudding! One of the main benefits of a Business Plan is that it really can help clarify your thinking and planning. I coach a lot of clients who are developing their business plans and I am always amazed at how their embryonic business ideas become solid and defined as we work through the plan.

To me, the main benefits of a business plan are:

A Curriculum Vitae of your business and you – this document lends credibility to you. When seeking commercial finance or additional business partners, presenting a well written Business Plan is a MUST
The blueprint for your business – sure, as you run your business and it matures your vision will change. You will get a feel for what works and what doesn’t – but if you don’t start out with a clear picture of what you want to achieve with your business, how will you define success?
Market Research – when you create your Business Plan properly, you will be defining your market, your target audience and determining how big that market is. It’s not unusual for a Business Plan to be started with one vision and after the indepth Market Research is completed, that vision is altered to better suit the market conditions.
Communication Action Plans – once you have your market defined, you can then set in place a Communication Action Plan or Advertising Plan that you will follow for the first 12 months, or even longer. By no means is this plan set in concrete, but in creating this plan you are able to budget for advertising and marketing expenditure.
Goals and Objectives – once your business is operating, it gets tough. It’s not unusual for small business owners to put in long hours in the early days of their business – and it’s easy when exhaustion hits, to loose focus on ‘the big picture’. By defining specific Goals and Objectives in your Business Plan – and taking those and putting them above your desk – you are better able to maintain focus on the things that will help grow your business.
Financial Forecasting – once you have your Goals and Objectives defined, your Communication Action Plan, Resourcing and Production processes defined, developing your financial forecast is much simplified. I won’t say it’s easy, but being armed with all the great information you have gathered while writing your plan does make it easier.

Finally, your Business Plan should become a living document. Once created, it shouldn’t be placed in the top drawer to gather dust. Once a Quarter, review your plan against what you’re doing… rewrite the areas that need attention, reassess your financial forecasts and let your Business Plan become your Blueprint for a successful business.

About: Charly Leetham

Website: http://askcharlyleetham.com/

Profile: Charly Leetham is an Online Business Implementation Expert and Small Business Coach. She is dedicated to bringing useful and free information to new small businesses to aid in their success. With many years experience in managing business for employers and herself, Charly shares her many experiences and insights with readers.

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