Do you have a business plan? It seems like although many large businesses and corporations understand the necessity of business plans for their success, many small business owners and, in particular, online business owners have neglected creating a plan for their business and are suffering the consequences.
What are Business Plans?
Business plans can be really simple or really complex but they need to state what your business is, what you are doing, goals you have and how you plan to accomplish them, what marketing tools you will be using and a description of your target market. If you are seeking financing for your business then you will also need to include a forecast of how you expect to use these finances and how much you expect to make. If you have a business plan that is longer than a few pages long it is also a good idea to have a shorter executive summary so that those who are not interested in reading all the details can still see the main points in this summary.
Why is a Business Plan Important?
A business plan is important for a number of reasons. If you are seeking finance for your business then one of the most important reasons will be to show investors that you have a viable business plan that is likely to make them money and not lose their money.
Even if you are not seeking finance for your business it is a good idea to create a business plan that will help to keep you focused and attaining the type of results you want to obtain. This business plan will set out your goals and a plan of action for accomplishing these goals, so making them easier to reach than if they were just in your head.
Another reason you may find a business plan useful is in sharing your ideas with others, especially new staff you may want to hire. If you are clear in your own mind and have it down on paper what you want to accomplish, what your business stands for and how you are going to build your business successfully then you will find this a lot easier to share with others.
A business plan is essential for the success of any business, whether it is a small home business or a large multi-national corporation. A business plan not only helps you get financing from investors but also sets out a clear plan on how you plan on achieving success with your business and keeps you focused on this accomplishment.