If you are an aspiring entrepreneur, the next most important thing after having a business idea is having a business plan. Why? It is the strategic outline of the step-by-step processes on how you can achieve your business goals. Regardless of how immediate these goals are, having this tool will guide you along the way.
Below are some of the major reasons why each businessperson who wishes to establish a startup needs a solid business plan:
Your business plan will guide you to make the right decisions.
Because your business plan outlines your vision, mission, objectives, strategies, timelines, and key performance indicators, you’ll have a guide on how to make your business work. Since you have taken into consideration the whole strengths, weaknesses, opportunities, and threats to your business, you can customize the approach on how you’ll do business. The same will also be the reference on whether your operations are on track. You can boost or recalibrate depending on the actual business scenario, and as needed.
This document is a tool to fund your business.
If you’re eyeing a type of business that will require a huge amount of investment, having a business plan is imperative. It is a document required by investors, such as various financial institutions. Of course, they need to evaluate your plan, see if your targets are grounded on reality, and ultimately make sure that your venture is profitable so that their money will not be put to waste.
It is a communication tool to all the stakeholders of the business.
When we say stakeholders, it is not just about the investors who’ve put money into the business. The term refers to everyone involved, including your employees, suppliers, and customers. Thus, to make everything work, everyone must be guided and anchored in one direction. And that is the purpose of the business plan. It will provide a clear direction. For instance, investors will know why they will invest, employees will know why they’ll work for the business, suppliers will know why it will be best to provide products and services to your business, and customers will know why they will patronize your business.
Consequently, proper research is the key to create a good and solid business plan. You can easily access resources, such as the internet, to start doing it now. In the Philippines, there are various internet service providers where you can avail of service (if you still don’t have one). Once you have a solid plan, you have a solid foundation awaiting implementation.
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