13 Unavoidable Reasons Why You Must Have a Business Plan
13 UNAVOIDABLE REASONS WHY YOU MUST HAVE A BUSINESS PLAN AS AN ENTREPRENEUR
1. Business Plan makes you stay focused and on track
I have a popular slogan with me “that the focused attitude of an Aircraft is what keeps it going beyond the limiting gravitational force.” When you venture into business, things you never imagined that existed keeps popping into your imagination and if you lack a clear-cut plan of what you are in for and where you are going you may lose focus and start failing. If you want to know Entrepreneurs who lacked concentration go and check those who had no Business Plan.
2. A Business Plan offers you good assistance in setting the standard for accessing and evaluating your business
By taking your mind back to the day you first had that business idea(s), you will understand with me that the business you thought of was quite fascinating. If by any means something goes wrong in your absence, it is with the help of the Business Plan that people can correct the mistake made being in accordance with the vision of the Pioneer. I stand to be corrected that one of the reasons why so many businesses could not survive beyond the first generation owners is because they lacked solid and implemented Business Plans.
If there be a yardstick for measuring accuracy in staff performance in a company, an assessment tool for determining high-level performance in School systems and a limit of Right to offenders, I think we would have no heavy problem to contend with. Remember: Business Plan is a compilation of your Business Ideas in such a manner that it can deliver an optimum result of success. This makes it clear that we must not limit a Business Plan to only businesses. It must be extended to everything that makes us busy – that’s ‘busyness.’ It could be a talent, life goals or a profession. Just name it!
3. Adjustment and Readjustment where and when necessary can only be real in a business that had a Business Plan
To identify the place of error in a licking roof, you must search out for the pigeon-hole using the Building Plan. And until you find the Pigeon-hole in the Building Plan, you may succeed in spending your time in futility. With the help of a Business Plan you can be able to find out mistakes and business failures where and when necessary and within the limit of your knowledge or that of your hired Professionals offer solutions to ameliorate it.
4. Business Plan helps you build values and principles that will guild your company
The kind of product you are limited to trade on must be inculcated in your business plan. How you intend to convince customers must as well be part of the content of your business plan. And the class of customers you are out to serve, the value-rating you seek to acquire in the market, your innovative approach and the standard every workforce of the company must undertake in fulfilling the company’s vision must be strictly spelled out and followed in the Business Plan.
With this, you have acquired the unbending principle towards achieving business breakthrough and greatness.
5. Business Plan helps you recognize opportunities, identify risk, plan preventions and develop strategies to tackle any eventuality
Entrepreneurs who have a Business Plan for their business and apply it to the core are never easily tossed up and down by the prevailing societal issues at hand. It is this kind of people that Zig Ziglar referred to as Real Managers who get excited when their customers complain. Zig Ziglar has it that when customers complain, business owners and Managers ought to get excited because it is a huge opportunity for more business. Why would they get excited because they have just been reminded of their weaknesses and that’s a good opportunity to either subdue it or work on it?
Even before they walk into business, by the power of a good Business Plan, they have known what their possible opportunities for more business are, a limiting weakness that could stand their way, possible risks they must undertake to unveil the next success and of course have searched out means they could prevent the avoidable risks and strategies to tackle the unavoidable risks.
6. A Business Plan defines your products or services
It is in your Business Plan that you determine if your company will be focusing on delivering products (and what type of product?), services (and what type of services?) or products and services (and how this two can be combined optimally). To establish a firm that can’t fail so easily, you must seek to deliver services when selling your products.
If you don’t know how to start or what to sell, start by selling services and then grow into selling products. Once you’ve grown into selling products after services, you can go to think while your business goes ahead in gaining the market shares.
7. A Business Plan helps you channel your energy in the right direction and eliminate waste
Your Energy Bank Account has things that make it stocked up and things that make it glow red. The previous is the right investment of energy and the recent is the wrong investment of energy.
You may ask, how do people invest their energies wrongly? Yes! People do. They do that by taking uncalculated risk, by venturing into unpredicted success lane hoping that miracle will happen or luck will shine on them, by not studying the successful business pioneers, by working on assumptions and expectance of instant gratification. With a good Business Plan you can overcome this low-level mentality that has brought people unprincipled success.
If you have a good business plan which by professional look has been approved to last, you have no worry to do if the business will pay or not. You simply know that you are in for great business.
8. A Business Plan helps you identify your targeted consumer group and their particular needs and how to proffer services to meet those needs
Every product has its customers, every Speaker has his/her audience, every school has her students and every congregation has her God. How can you get this right? It is through good business planning. You must know who you are in to serve. That will help you better in knowing how to serve them.
9. With the help of a Business Plan you can be enlightened to who your competitors are, and the strategies with which you can stay ahead of them
Do you think you are alone in the business? You will be wrong to think that way. There are one thousand and one persons who are in to share the customers with – and who gains a larger share of the customers gains the highest business success. As a Sales Expert, I have learnt through many experiences not to bother myself too much on increasing my sales volume – but I’m rather devoted to increase the influx of my customers because when customers’ patronage increases, sales volume automatically increases.
The easiest ways I have discovered overtime in staying ahead of my competitors is to be innovative and move into a virgin land. Take the lead in innovation both in product branding and in technology, and you will always prove a great sign of superiority over your competitors. The successful Banks and Telecommunication industries we see today in Nigeria are those who are highly innovative and have strong believe in virgin lands.
10. A Business Plan promotes your business before investors and as such gives you an edge in securing loan and partners
One of the foremost things an investor demand of you is your Business Plan. No one plans to risk his hard-earned money in futile activities. No one! So, knowing too well that you want to build a business-type that last, then investors will one day be involved.
These investors are looking out for where they can invest their money and go to sleep for returns. And the first criteria in having your business a choice pot of investment by numerous investors is in you having a good business plan.
11. With the help of a Business Plan you can manage your assets and be able to analyze your cash flow
In a good business plan there’s clear-cut analogy of how you raise your funding, how you handle your income, who handles your cash, how you spend it and when you spend it.
For the sake of space let’s list out this remaining two and in my next article I will show you the typical requirements or features of a good business plan:
12. When you have a good Business Plan it helps you set achievable goals
13. A good Business Plan helps you know which company to merge with or sell to in case of bankruptcy