The exercise of budgeting and market planning will help you define your Target Market, your Unique Selling Proposition, optimum pricing strategies, and outline how you intend to sell/deliver your products to customers.
In addition, developing a budget for implementation will assist with determination of your startup and operating capital requirements.
Here are five good reasons why you should write a business plan when starting a new business.
Writing a business plan is the best way to test whether or not an idea for starting a business is feasible, other than going out and doing it.
Your business plan is the roadmap for your company.
It clearly states where you are, how you got there, and how you plan to proceed.
Writing a business plan is time-consuming, but it's essential if you want to have a successful business that's going to survive the startup phase.
If your business doesn't have one, maybe it's time to start working on one.
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.
In the growth phase an updated business plan is useful for forecasting or raising additional capital for expansion, and if you decide to sell or close the business the business plan can include strategies and timelines for the transfer to new ownership or dissolution of the company.