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.A business plan is essential if you're thinking of starting a business, but it's also an important tool for established businesses.
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.
Any potential investor will want to know what they’re getting themselves into, how their money will be spent and whether or not you will be capable of pulling it off.
“Writing a business plan requires you to meticulously research the market, which will help you learn more about what your customers really want, how much they’d be willing to pay, how you can attract them, and who your competitors are.” With this in mind, if you plan to raise money to start your business, whether from outside investors or friends and family, it’s important to have a well-researched and compelling business plan that inspires confidence in your ideas as well your abilities.
In this sense, the business plan is your safety net; writing a business plan can save you a great deal of time and money if working through the business plan reveals that your business idea is untenable.
Often, an idea for starting a business is discarded at the marketing analysis or competitive analysis stage, freeing you to move on to a new (and better) idea.Most new businesses need both startup and operating capital to get off the ground and without a well-developed business plan there is no chance of getting debt financing from established financial institutions such as banks or equity financing from angel investors (unless they happen to be family members or close friends).And established businesses often need money, too, to do things such as buy new equipment or property, or because of market downturns.The company's original business plan needs to be revised as new goals are set.Reviewing the business plan can also help you see what goals have been accomplished, what changes need to be made, or what new directions your company's growth should take.The process of writing a business plan can do wonders to clarify where you've been and where you're going.Learning how to write a business plan can make the difference between a successful start-up and a failed venture, but not all business owners and entrepreneurs recognise the importance of having one.Having an up-to-date business plan gives you a much better chance of getting the money you need to keep operating or to expand.Investors and financiers are always looking at the risk of non-repayment, and word-of-mouth is no substitute for written facts and figures in a properly-prepared business plan.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.