The Value of a Business Plan

 business plan puzzle

A business plan is a road map for the journey that you plan to take to get your business headed in the right direction.  Why is it important?  Let’s take a look at what some entrepreneurs have to offer on this subject.

Kathy Burns-Millyard of Demand Media states that a business plan clarifies the purpose and direction of a business which will enable you to assess which actions need to be taken before progressing onward.

A business plan also offers a window into the future per Alan Gleeson.  This will allow potential investors to see where you view your business going in the future. A plan that is clearly defined will relay a very obvious message to others on your interpretation of the goals you have for your business.

Tim Berry suggests that a business plan can be useful for some not so obvious reasons.  One being that it can actually help managers set specific outcomes.  It can also assist in making decisions like which type of people to hire, whether or not you rent new space or if you require new assets.

Steven D. Peterson, Peter E. Jaret and Barbara Findlay Schenck from Business Plans Kit for Dummies, 4th Edition have a few benefits to share with us in regard to formulating a business plan.

A business plan should be viewed as an occasion to investigate a new prospect.  Next, it should include your business’ mission and vision which should be a precise declaration.  Lastly, record ethics and standards that will assist you in how to maneuver during difficult times.

The business plan provides a clear and comprehensible picture of what you envision for your company.  It not only helps others to see your business as you do but it also serves as a guide that you can always reference at any given time.

Writing a business plan can be a cumbersome task initially but it is well worth the effort once it is has been completed.  Would you take a long drive to foreign territory without directions?  I am going to assume that the answer is no and even if the area were somewhat familiar, you’d probably opt to use your GPS system as backup.  The same principle holds true for the purpose of a business plan.  You should not travel the road of entrepreneurship without one.