21 Feb Business Plan, the necessary key to success
When we have a business idea, it apparently seems brilliant, but we must think about it and not rush into it.
Why do you need a business plan? Mainly because its job is to help a person who’s starting a business to define their idea, it’s the presentation card when obtaining bank loans through investors or partners. Studies show 80% of businesses that start without business plans fail.
But, what does it do, exactly? We’ll talk about that today.
1. Set goals
A business plan helps you start with the right foot. It lets you know how much money you need to reach your goals, and which abilities your employees must have, so the business can succeed. With this road traced, you can know you’re going in the right direction.
2. Know how much operation costs are
Operation costs will not be permanent, and as your business keeps growing, you will need more money. A business plan will allow you to know how much money you need, and if your plan is worth investing on.
3. Collecting funds
Most of investing funds and banks must evaluate your business plan, to decide if investing on your business is a good idea. On the other hand, when it comes to asking family or friends for money, the best way to collect the sum is leaning on the business plan, to make people understand your vision clearly.
4. To keep control over your business
A business is controlled while your operations are small. Having a business plan will help you go back and locate what’s not working and what can improve.
5. To clear up the landscape, copy it, and improve it
A business plan is not a document you create once and store. It’s a guide that must adapt constantly, while your business grows and changes. Writing or investigating to make this plan, is a learning opportunity to learn about the industry, market, competitors, and identify the challenges you may find to create strategies.
Successful businesses revise and update their business plan when circumstances change. The advisable action is checking, and if needed, renovating the plan. If you’re part of a group, evaluate it together and brainstorm.
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