While it may be shocking, there are some small-to-medium-sized businesses who don’t have a proper business plan. This isn’t due to owners not knowing what they’re doing: they’ve just had a great idea, quickly set up and hit the ground running. However, in time, business dries up and all the required admin is pushed aside in favour of day to day productions and sales.
Trouble is, may businesses can’t afford to not have a business plan in place. Here’s why:
You Can Plot the Future
A well developed plan can outline potential scenarios, pinpoint specific objectives and how you’ll achieve them. All of these components must be carefully considered to ensure success in the long term. If you understand where your business currently is and where it’s going, you’ll be able to manage it much more effectively.
You Can Sustain Growth and Obtain Funding
You Can Develop and Communicate a Course of Action
With a business plan in place you can review future possibilities and settle on a course of action, thus allowing you to focus on key activities. Specific targets can be allocated to individual employees, allowing progress to be monitored seamlessly.
Having a written plan is also easier to communicate and will allow for feedback, which is useful if you want the growth of your business to continue.
You Can Better Manage Cash Flow
The main reason for the failure of a business is insolvent as a result of issues regarding cash flow. Having a well structured business plan, that manages funding in advance, ensures this is less likely to happen.