While working as a business developer over the years, I have met many entrepreneurs who do ask me: Do I really need a business plan? Many ask questions such as; is it worth the investment or their time? Some are even concerned about its relevance to their businesses since they are just starting out and not intending to raise funds anytime soon.
So, the major question to ask is; is a business plan only needed when you need to raise funds, seek partners, or apply for grants? If you are not doing any of these three, can’t you just skip the whole business plan writing process, and get right on with your business.
Well, that’s a question many entrepreneurs like you have had over the years, and I and other professional business developers have had to answer. Here in this article is all you need to know about why you should get a professional business plan now before you proceed in your business.
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Why Get A Professional Business Plan Now?
A Business plan help Minimize Business Risk
Well, you must have heard a lot about the risk involved in starting a new business right? Well, without scaring you, all that you’ve heard is mostly true. In 2019, the failure rate of startups was around 90%. Well, that’s quite a huge number right?
Most failure is actually as a result of the fact that there are many things you don’t know or have an idea of when you’re just starting out. Many entrepreneurs are actually knowledgeable about what their business do, however, lack real knowledge on many other things that matter and dictate the success of a business.
There are many risks that comes with starting a business, which you have subscribed for the day you decided to start a business. However, there’s one sure tool you can employ to help you mitigate the risk in your business, and that is a professional business plan!
A business plan written by an experienced professional can help you close operational efficiency gaps, check out and strengthen weak spots, get to know more about your target customers, keep competition where it belongs, and manage your business finances well.
For example, I have written some logistics business plans for some new businesses that enlightened the entrepreneur on how well to manage their finances and see the market they operate in. I got feedbacks like “Thanks to the business plan, we are now focusing on the right target market for our business as against those we’ve been spending most of our startup funds to reach without any significant result.”
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You can finally make spending decisions with confidence
Making the right spending decision is one of the hardest things to do in a business for entrepreneurs who are very conscious of not failing.
You may not know now, however, let me give you the heads up. As your business starts to grow, there are some key decisions you’ll need to make that can either help your business growth or choke your business dream to death.
You’ll have to make big decisions like; hiring more hands, expanding to a new location, adding another product or service option, purchasing rather than leasing, among many others.
Well, research reveals that this is a critical stage that determines the success of many businesses. And fortunately, a professional business plan can guide you right in tough times such as this. In cases such as this, a professional financial forecast and analysis can help you stay out of trouble.
With a good financial forecast, you get an idea on when to be spending on some things, and when you shouldn’t try it. A professional business plan can help you decide better since the forecast is there already to help predict the outcome of the decision you’re about to make.
Essential Ingredient for a Loan, Investment or Grant
No one wants to put their money where they’re not sure it will return to them in multiple folds. So also, every investor or individual will only put their money in a scheme or investment platform that they feel they have adequate information about.
This is exactly what a professional business plan will help you achieve when you are seeking external investments. Every investor or agency giving you a business grant wants to understand your business and know if it is set up for success or failure.
This is the point where the magic wand of a professional business plan comes in. Your business plan must be able to help the readers understand your business model, the financials, the competitors, your product or service, its unique competitive advantage, and how your team are best suited to drive the business forward.
I have over time made this easier for many startup entrepreneurs by helping them walk through step-by-step the complex process of creating a well-scripted business plan content and setting up a future-proof financials that can be understood by anyone that can read.
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This simple, explanatory, and sound-proof financials have helped many entrepreneurs I have worked with understand their financials, what they should expect and work on, and most importantly defend the content of the financials in any presentation to external investors or partners.
Get Early Information about Possible Cash Flow Struggles
With where I stopped at the previous reason, I feel now is the time to let you know more about the importance of a professional business plan when it comes to guiding your judgment for your business finances.
Many entrepreneurs literally start their businesses without understanding and knowing the impact of every expenses on the profitability and long-term success of their businesses. Many don’t know or understand the impact hiring just one more extra staff can have on their business finances. Sometimes, those little expenses you don’t take note of are the little foxes that will ruin the vine of your business.
However, with a professional business plan in place, you can easily make good spending decisions and monitor your business cash flow right from day 1, even without hiring an accountant.
There are three key financials necessary to guide a business’ financials, cash flow statement, the balance sheet, and the profit and loss statement. These financial statements available in a professional business plan will help you steer the course of your business in the right financial direction.
A review of your business plan from time to time will always help you discover the loopholes in your cash flow statement, and prepare you for profitability.
It is the foundation for strategic business planning and goal setting
Things may not always go as planned, however, prior solid planning prepares you for whatever might come your way, and informs you when things aren’t going your way.
Many new entrepreneurs always lack the ability to project accurately into the future. This is either as a result of lack of ability to see the big potential of their products or services, or the “over-dreaming syndrome” that makes many steer away from the reality of the market.
When you are not real with yourself and your business, you tend to expect more than is available, and mostly crash within the first three years of the business. And on the other hand, low expectation also makes many entrepreneurs and businesses fizzle out when competition arises, the demand escalates, and the market challenges and threats begin to attack the growth of the business.
A business plan helps you to plan ahead, and know most of the things to expect. It also helps you get your team on the same page. If everyone on the business team understand their roles in the business and how it directly affects the success and growth of the business as outlined in the business plan, it puts them on their toes, and make them desire to do more.
A professional business plan must have goals and objectives section and a section dedicated to milestones and SMART goals for the business. Your business plan should be used to set high goals and milestones, which will guide your sales, marketing, and business corporate values and philosophy.
A professional Business Plan is an Asset
When you need to sell your business to raise some funds for some projects, or you’re moving out of town, or thinking of changing your career path, a professional business plan is an instrumental tool you need for success.
When you’re trying to get your business to be acquired, a professional business plan can help increase the valuation of your business. You don’t know why right? Well, your potential buyer will only value your business very well the more they understand all that is needed to be understood.
A clear indication of the target market, the financials, the marketing and sales strategy, the product and services, the traction, the objectives and goals, the location, the competitors, and the industry analysis, will help the buyer understand what they are acquiring, and inform them about the success of the business they’re about to acquire. With this, you can then easily raise the valuation of your business, since nothing is left ambiguous to your buyer again.
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Key Takeaway
The impact and the importance of a professional business plan can never be overemphasized. The impact goes far beyond just getting some documents ready before you start a business, or before applying for grants and loans.
And contrary to many opinions, writing a business plan is not rocket science. The process is straightforward once you know what should be in the different sections, and what your readers are interested in. Your business plan doesn’t have to be as long as 100 pages, however, in its conciseness, it must cover all necessary sections that highlight and meets the purpose of the writing.
Well, with my help, you can actually create a professional business plan for your business in just 5-10 days. Whether you’re in need of external funding, trying to sell, in need of operational guidance, I can get you a professional business plan within a short time frame at a near-free cost.
Fortunately, you don’t have to break the bank to get a custom-made professional business plan that suits your business again. You can get started here at a near-free cost. And if you’re in need of a comprehensive tutorial on a business plan and pitch deck writing, then you should subscribe here now to get updated on the arrival of my comprehensive business plan writing course.
