A business plan helps to get you organized. It carefully spells out a company’s projected course of action over a period of time. It is the blueprint for building your business.
Therefore, a business plan is an essential tool in obtaining financing and should describe the business itself in detail as well as all important factors influencing the company, including the market, industry, competition, operations and management policies, problem solving strategies, financial resources and needs, and other vital information.
The plan enables the business owner to anticipate costs, plan for difficulties, and take advantage of opportunities, as well as design and implement strategies that keep the company running as smoothly as possible.
A business plan is a “living” document and is an ever-changing document. As your business makes changes and adjustments; so should your business plan. A common mistake of many businesses is to file their completed business plan away and not refer to it again.
You wouldn’t build a house or do a renovation without a blueprint; don’t run your business without a business plan.