We’ve talked before about the elements of a business plan. But what are the benefits of writing one?
A business plan is the design and construction plan for a great small business. If you wanted to build a house, you wouldn’t walk over to an empty lot and just start nailing boards together. You’d follow a blueprint that tells everyone what the finished product should look like and how to build the home. Essentially, a business plan serves the same purpose.
There are five really good reasons to write a business plan before you start a business:
- To test the feasibility of your business idea and work out any bugs on paper first.
- To develop strategies ahead of time for marketing, finance, operation and human resources, instead of when you’re in the fast-paced start-up stage.
- To get funding like a bank loan.
- To attract investors.
- To have a roadmap to follow for at least the first year in business.