Top 3 Reasons For Writing Business Plans

Whether you are a start up or established business, and whether you are a non-profit organization, writing a business plan can be one of the most useful things you can do for your business. Obviously there are different types of business plans depending on the nature of your company or organization. It’s not enough that you have a “hunch” your new start up will be a roaring success, or you believe your latest web. 2.0 idea a surefire “ten bagger” success for the lucky venture capitalist. There are people who need to take a close look at your business plan; whether it’s you, internal management or external investors. In this article, we will look at the top three reasons for writing business plans.

First to answer the question: “Is the business feasible?”

Before you actually commit funds, manpower and time on starting a business, it helps to actually have a “dry run” to see if the venture you have in mind has a good chance of success. The business planning process forces you to look at what your competitors are doing and to ask yourself how you can differentiate your product or service. Typically we call this a SWOT analysis – Strengths, Weaknesses, Opportunities and Threats. At the same time you want to identify, as clearly as possible your unique selling proposition. This can be a special feature or something unique about your branding. Just be different and attractive in the eyes of your target market. Going through this process will give you a better idea of you chances for success in the marketplace.

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Professional Business Plans – Your Role in the Process

Seeking the help of a professional when you create your business plan, whether an accountant, lawyer, business plan consultant, or writer, is highly recommended. However, it is important to remember that throughout the development process you still have a key role to play. You can never truly “outsource” the creation of your business plan and must stay in control over the product that is created.

Strategic Decisions

While consultants, lawyers, and accountants may have strong recommendations for how you should craft your strategy, the final decisions on strategy must come from you. Take the information these professionals bring to your attention and do your own research into alternatives for your marketing, operations, and overall business strategy. No one protects your interests like you do after all, and you should never follow the recommendations of an advisor blindly. After all, you are the one who will have to execute upon the plan. It is important that the business plan be the blueprint you intend to act upon. If the plan becomes just a sales tool built towards raising funds, you run the risk of misleading funders who expect you to deliver on what you write.

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Scrap the Big Business Plan – Here’s a Better Idea

Out of 300 people polled, 72% said they did NOT have a written business plan.

The truth is that most of you reading this article do not have a written plan.

Why?

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