Do you really need a business plan?May 17, 2023
Running a small business involves a lot of moving parts, and it’s important to make sure they’re all going in the right direction. That’s where a business plan—a document that captures a business’s objectives and provides a road map for achieving them—comes in.
Three Big Benefits of Having a Business Plan
1. Helps you steer your company as it grows.
As opportunities or unexpected challenges arise, you can make strategic decisions about how to handle them based on how they fall into your plan and how they may affect your goals.
2. Helps you hire and do business with the right people.
A good business plan will describe the types of employees and professional services your company needs to succeed and grow. So, as you’re hiring workers or looking for vendors, your business plan will help you determine if their qualifications and characteristics will be a good fit.
3. Helps secure funding.
The chances of getting a bank loan or attracting investors are slim to none without a business plan. A business plan offers details about your products and services, management, operations, sales and marketing, and financial projections. It gives lenders reassurance that you’ll be able to pay your debts and investors confidence they will get a return on their investment.
For help writing a business plan, visit the Small Business Administration’s website at SBA.gov, or consider reaching out to the nonprofit SCORE at score.org for free mentoring and assistance in creating a business plan.