Thursday, December 15, 2022

The importance of planning

 

The importance of planning


The importance of planning


Are you planning to start a new business? Or are you considering expanding your current business and need a bank loan or third-party investment?

If you are looking for a capital investment, it is very likely that you will be required to have a business plan. If you're starting a business, despite the work involved, a business plan can prepare you for the obstacles ahead and help ensure your success.

A business plan is something that many small businesses fail to create, yet many business owners insist that having a written business plan is one of the keys to their current success. Creating a business plan forces you to look at potential obstacles to your business and prepares you to find solutions to help you overcome them.

To find investors or get a bank loan, they will want to see that you have the experience or resources to run the business. They will want to see your projected income as well as your suggested payment plan already in place. Taking the time to do this is not only important to them, it gives you a measurement tool to check if your business is growing properly. You can measure your success in how close to plan your business has actually performed. Maybe it does worse, or maybe it does better, either way it helps you determine how well your business is doing.

If you've never seen a business plan before, you may be worried that it's too difficult a proposition to handle on your own.

While there are services available where you can hire someone to write a business plan for you, depending on your needs, it may be worth getting familiar with designing a business plan. This will not only help you provide the necessary information, but also encourage you to try it on your own.

There is a free tool at www.bdc.ca that will help you create a business plan. Some of the topics you will need to explain are your market, customer, competition, marketing plan, research and development along with financial forecasts. You may consider hiring someone to help you with your financial sheets after you complete the written portion of the Business Plan.

Your business plan will become your guide and silent business partner, pointing out where you need to improve and helping you stay one step ahead of your competition. Make it a priority to have this crucial roadmap for your business.