Why You Need A Plan
Why do you need a written plan?
Having a well written business plan is essential to keep you and your team focused on the main purpose of your company.
The truth is that many business owners think the only time they need a business plan is when they are raising finance but that simply is not true. If you fail to plan, you plan to fail.
Here are our top 5 compelling reasons you need a business plan:
1: Get A Good Perspective Of Your Overall Business:
A business plan gives you a unique perspective, it allows you to connect the many dots that are needed to make your business a success. With a business plan to guide you, you will be able to see how all the departments in your organisation connect to one another.
2: Define Priorities:
The truth is that you can’t do everything required yourself. Your resources are scarce so you need to get your priorities right. With a business plan in place, you will be able to prioritise and allocate your efforts, time, and resources accordingly. Then plan to bring your team into the positions within the business as dictated by your business plan.
3: Strategic Focus:
When you are running a small business, it is extremely important that you have a strategic focus. This means that you should look at your target audience and try to only serve them. As your business grows and expands, you can then try to reach a bigger audience. The business plan keeps you on track to serve the audience that you set out to serve rather than chasing everyone and everythings.
4: Adopt Needed Changes:
The market is always changing, evolving. And your business plan needs to evolve also which is why we always recommend updating your business plan every twelve months. Your business plan should always be looking forward over the next twelve months, highlighting possible anticipated changes in your market, coming up with contingency palns for dealing with these changes, making sure you are on the right track to meet your goals.
5: Manage Cash:
One of the main issues most small business owners face is in managing their cash flow. The truth is that this task isn’t easy as you would think. With a well written business plan and cash flow forecast in place, it will make your cash management job so much easier as you will be able to see periods, in advance, that may need