Why You Need a Business Plan

I am assuming that by reading this, you do not have a business plan, right?

If you are seeking financing (i.e. bank or investors), then creating a business plan is a requirement. However, even if you are not planning to trying to raise additional funds for your biz, there are many excellent reasons for writing a business plan. Here a just a few:

1. A business plan will help you focus on what is most important in your business. Most business owners just go through their daily routine without much thought about why they even do what they do. Even if they knew what it was the really did when they started, they may have lost their focus now. Yes, it is easy to say, "I make drill bits for people!" But, is your business then to make drill bits? Or, is it to provide your customer the tool that will help them make a hole!

In other words, ask your self these questions: "Why does my business exist?" Or, "what makes my business so special?" Or, "why will customers come to me rather than the competitor down the street?" Or, "what is it exactly that my business sells?" Just asking yourself these questions will put you further ahead of most business owners.

2. A business plan will help your employees focus on your businesses' goals. Maybe you've never shared with your employees what you want to accomplish. Try it! They will be more likely to work hard for a common goal, than just doing their job.

3 A business plan will help you make realistic goals. Are your projections correct? If you spend the time to do reasearch, you might find out that you overestimated or underestimated your projections.

4. If you don't have a road map showing you where you're going, how are you going to get there?

These are just a few of the reasons why you need a business plan for your small biz.

Yes, business plans take time to produce. Yes, most small businesses don't do them. But, remember most small businesses fail too!