10 Reasons to Have a Business Plan
A business plan should answer a lot of questions. Here are 10 of them.
- What is my vision for the business?
If you can’t describe it, how will you make it happen?
- Will the business make money?
Prepare a monthly pro-forma income statement for the first year and also quarterly for the first three years.
- How much money will I need up front?
List all the items you have to spend money on, before the business starts. Prepare a monthly Cash Flow Forecast for the first year.
- Will I be able to get funding?
Banks and investors need a business plan. How safe is their investment, when will they get their return, how much will they get?
- How will I handle business problems?
Prepare risk analyses and a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis.
- What am I going to do, and when?
Set objectives and milestones. When your goals are written down they are much more likely to happen. “If it’s not written down, it’s not a goal…it’s a dream.”
- Is there a market for my products or services? (Market Research)
How big is the market? How much will you get and why? Is your sales forecast reasonable? What is the profile of your customers?
- How will I sell my products or services? (Market Strategy)
What is your market profile? What is your pricing strategy? Who are your competitors? (You ALWAYS have competition, even if it’s just competition for the money in your customers’ wallet.) How will your customers find out about you?
- What are my staffing requirements?
How many employees will you need and when will you need them? (Can you realistically make the sales that you forecast with the number of employees that you planned?)
- Will my business really work?
If you don’t have a business plan, how are you going to get there; and how will you know when you actually arrive? Having a written plan forces you to think through all of the issues.
We provide answers to business plan questions. We have helped businesses from all over BC, Alberta, Ontario, Canada, and across the globe. Don’t let geography get in the way of you getting a business plan that works for you.