There are a few ways a business plan helps set you up for success. First, it forces you to consider all aspects of the potential business. When done right, your plan guides your operations.
Second, if you’re looking to secure funding through a bank loan or by private investors, they’ll want to see a solid business plan. Before anyone funds your business, they’ll calculate their return on investment. A business plan shows them you’ve thought through everything from market analysis to marketing and sales strategy. It’s creating a roadmap designed to get you — and them — to your destination.
Third, it helps you evaluate your progress. When you determine a vision for your small business, you can set goals to meet that vision. Decisions on positioning, marketing tactics, and operational efficiencies become easier because you have a goal in mind. When Key Performance Indicators (KPIs) are missed, you can adjust your plan. Without goals, you wouldn’t know how to evaluate KPIs.
