Benefits of Having a Business Plan - Web Design Forum Graphic Design Site Templates Flash CSS Discussions

thomas00 · #1 08-09-2010, 05:15 PM

Hello friends, welcome to the forums.
Benefits of Having a Business Plan

Entrepreneurs often ask, "Why do I need a business plan?". Well, let's put it this way. Do you want a successful business? Because, writing a well-thought-out and organized business plan dramatically increases your odds of succeeding as an entrepreneur. Running or starting a business without a business plan is like walking through the dark without a flashlight. You can probably go a long way using just your senses and relying on basic instincts. But operating in such a manner leaves you wide open to the risk that something will get in your way (like a competitor) and you probably won't see it until it is too late. And just imagine all of the opportunities that are just waiting to be grasped - but without a flashlight, ah sorry - business plan, how will you see and take advantage of them?

The benefits of having a business plan include:

* Helping you to clarify your vision and deciding whether or not to forge ahead with the idea.

* Determining if your product and/or service has a sufficient market to support it and whether or not it will be profitable.

* Providing an estimate of your start-up costs and how much you'll need to invest or finance.

* Convincing investors and lenders to fund your business.

* Defining your target market (who your customers are or will be) and how to best reach them through strategic marketing actions or expanding market coverage or reach.

* Establishing or reevaluating your competitive position within the marketplace, by conducting a thorough analysis of the competition (finding out where your competitor's weaknesses are and how you can take advantage of them).

* Defining corporate objectives and programs to achieve those objectives.

* Helping your business make money from the start by developing effective operational strategies.

* Understanding the risks involved and anticipating potential problems so you that can solve them before they become disasters.

* Setting a value on a business for sale or for legal purposes.

Thanks

nancy34 · #2 08-23-2010, 11:33 AM

Hi

Convince Bankers and Investors
# Summarize your research and plans in a written form to share with bankers and investors. Demonstrate you've done your homework about the market and your business capabilities, and that you've established a logical plan for responding to changes. Make it clear how investments are projected to pay off for everyone, and offer to keep them informed about your progress.
Compare Your Results
# The plan can also be used as a benchmark. Prepare periodic progress reports to monitor your business results with your forecasts and share the results with your staff and your banker or investors. The reports will either be a cause for celebration or they will stimulate modifications to the plan.
Building Commitment
# The greatest benefit of developing a business plan lies in the discipline of the process more than in creating the written document. Business owners who submit to the business planning process are forced to objectively critique their market position and organizational health. The discussions and research provide insights for managing business risks that cannot be obtained consistently through day-to-day operations. A business plan developed with input from the whole team creates commitment to achieve the plan as a team.

thanks

wendy34 · #3 09-01-2010, 10:40 AM

Hi

Benefit #1 - Direction - Business Plans provide a roadmap to success. A map shows you where to go and which street to take to get there. The research and brainstorming you will do when writing your Business Plan will help you figure out where to go and will give you a direction to take your business. For example, many businesses operate without goals. Imagine what it would be like to know what your goals are very day? How many new clients do you need? What products or services do you need to create? What sales level do you need to achieve to have a good quality of life? Knowing goals will give you the direction you currently lack.

Benefit #2 - Motivation - Business Plans create motivation. One of the first steps you should take when writing your Business Plan is to create a Vision of where you would like to be five to ten years in the future. Creating this Vision becomes motivational because it allows you to see the possibilities you can create for your business. For example, if you know that the grand scheme is to take your business international, you will be cognizant of the steps necessary to get there. You will focus on developing international relationships, learning the customs of other countries, and brushing up on the language.

Benefit #3 - Creativity - Business Plans written with a strong branding and marketing component help the entrepreneur think creatively. Without creativity, your company is just one of the many in your field. By using a creative approach you can design a business that sets itself apart in the marketplace with a distinctive look. All too often, I see bland, boring marketing messages presented in tacky ways. It's time to stand out in the crowd by getting creative and a well-crafted Business Plan can help you do that.

Thanks