Are you thinking of going to the Bank to get money to support your business? If you have not already done so, you may know that the first thing they want to do is see your Business Plan. You may not be sure that all the time and effort needed to prepare the program is important; if so, here are some of the key benefits you and your business can bring.
1. No matter how good you are at speaking, you will never be able to convey your business idea as effectively as a well-integrated Business Plan. It allows you to express your thoughts in a clear way.
2. Many times business owners try to sell their opinion orally and at the end of the conversation with the Bank the Manager is not as smart as before. I think you can guess the outcome of those many requests!
3. The Business Plan will help you convince yourself and the Bank that the project is possible. There is no such thing as having all the facts in front of you to clarify important issues
4. There is no escaping the fact that the business owner who pre-plans seems to have a desire for prominence and is very focused. A well-planned Business plan shows that you have the vision and know what you want
5. As there are so many ideas circulating in your mind, the traps or barriers to success are less obvious. An overflowing mind and full of ideas rarely find clarity. The Business Plan forces you to rewrite your ideas in an orderly manner. The result of this may be that you are going in a completely different way than you originally thought, or you may have abandoned your idea altogether. It’s not a fun idea, but what are your options? Losing your hard-earned money or the opportunity to rethink your vision?
6. It is a good tool for monitoring progress against the goals you have set for yourself (we will include goal setting later). By looking at the progress against your plan, you will be able to see if you are moving away from your original vision, and you will know what to put right
7. Imagine if you did not have this check in place; An unplanned change along the way or slipping into achieving your goals, if left unmanaged for a long time, can be detrimental to your business. On the other hand, it may seem that moving away from your original vision may be a better option, but at least noticing this change allows you to adjust your course in an orderly, systematic, and controlled manner.
8. Knowing the potential impact of the chosen path allows you to plan ahead, leaving you better equipped to deal with whatever the world of work can throw at you. This is one thing "mental planning" you would not accomplish
9. Writing your thoughts on paper may make you realize that you need to do more research on the need for your product or service. It may also emphasize that further investigation into your competitor's products or services is required. Further research can help you avoid costly mistakes or reveal hidden benefits, which you have never seen before!
10. The plan will guide you on how much money is needed to make the idea work. In your mind you may have a hard figure of what to do, but until you do a Cash Flow Forecast you may not realize that you will need an overdraft limit, in addition to borrowing money for your equipment. When it comes to preparing for Cash Flow Forecast makes you sweat profusely, don't worry as later in the book I will be showing you how to make one
11. One of the main reasons why banks reject loan applications is the lack of information that can help them make informed decisions. If the Manager does not have enough information about your idea or business, they will not feel comfortable enough to support you. He should understand your business before he can say yes. At some point in the future, he may have to apologize to his superiors for borrowing money, so he needs as much information as possible to support his decision. The Business Plan will make him feel comfortable and able to say yes
12. Once you have completed writing your Business Plan you will have a complete understanding of your business; its strengths and weaknesses, its function, what it may do, and what you can do to ensure its success. Making your own plans after the envelope will not achieve this, You should now realize that it is important to have a Business Plan; it can be the difference between success and that awesome “f” - failure! It’s all about understanding the importance of planning in advance. Spend time writing your thoughts on paper in a systematic and logical way.
Tagged With: why write a business plan, writing a business plan
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