Why You Need A Business Plan First!
Updated: Nov 21, 2022
A blog on the importance of a business plan when starting a new business. Includes definition, benefits of a plan, resources and more.
Starting a business is so exciting. It’s like that little light on the top of your head finally clicked. I know the first thing you want to do is create a website, and look into photographers for a photoshoot. But, listen honey. Before you look into a graphic designer for a logo, pick out you color palette and font, create your dang business plan. Whether this is your first, second or tenth business, a plan NEEDS to be put in place to ensure you stay on the right track.
In the process of creating my own plan I realized I had to go back to the drawing board do some fine-tuning. I had to move things around, change my perspective, and completely scratch out others. You know what though? It was so worth it. Think of a business plan as a GPS to get your brand or organization going. It’s a document setting out your business’s future objectives and the strategies for achieving them.
Your business plan will steer your business as it starts to grow. It can help you understand your market more in depth. Plus, a business plan can help you bring on business partners and investors, which means money, money, money. We like money for our business!
Your business plan will help you steer your business as it starts to grow.
The U.S. Small Business Administration describes this perfectly. Your plan“…is a written tool about your business that projects 3-5 years ahead and outlines the path your business intends to take to make money and grow revenue. When we think about a new business we think about the right now. “I need to get a logo.” “Who can pay to create a website?” Think about how a business plan could help you properly project where you should be in 3-5 years. Consider what milestones you’ll have in your mind to make sure you stay on task.
It can help you understand your market more in depth.
There are many aspects of a business plan:
Market & Competitive Analysis
Management & Operations
Funding & Final Projections
We’re going to focus on your market & competitive analysis for a second. Your market analysis is an assessment on your industry. Look up how much money was made in that industry in the last year.
Research the success rate of new businesses in that market as well. Your competitive analysis allows you to be aware of similar companies. This is important because they could have a similar audience to yours.
Understanding your market and competitors help you promote and brand yourself based off your uniqueness. This will be a key point in your marketing and branding strategy down the road.
A business plan can help you bring on business partners and investors
This document is not only for guidance. It can help you get funding or bring on new business partners. This is vital for investors to feel confident that they will see a return on their investment. Your plan is the tool you will use to persuade others that working with you (or investing in your business) is a smart decision. A business plan can help you earn money to properly launch your brand. That is better than the money in your pocket, right?
I tell my clients all the time, there is no wrong way to create a business plan. When I help clients create a business plan I personalize it for them. I make sure they understand it. We walk through each section together and use a format or template that is right for them. Remember, this is a living and breathing document people! We do not spend so time and research to create a beautiful informational packet just to stick it in our filing cabinet and never see it again! USE YOUR BUSINESS PLAN.