Introducing why you need to write a business plan for your startup! Without having proper business plan you won’t get success in any business.
Well, if you have proper marketing strategies and huge support then, you can make it without having business plan. But, during startup we found many hurdles which may disturb our business growth and personal life too.
Write a Business Plan… WHY!
So, in this article, we are going to share why you need to write a business plan?
1. Market Research and Marketing.
This is the one of the main component for writing business plan. Here, you have to research your products on targeted market and audience. If you ignore your market research then, you will face many issues in future. Similarly marketing strategies are also covered in business plan.
We’ve seen many people believe that business plan is worthless. But, if you don’t have marketing strategies then, you won’t get any future ideas about how you are going to market your product or service.
2. Business Management.
If you are starting your small business and doesn’t required any workers or staff members then, it will be OK.
But, if you are looking for long term big business then, you must have advance plan for how you are going to manage your manpower or management team. It has high potential to consume your extra costs on your employees.
3. Financial Goals and Profit.
Writing business plan helps you to identify or calculate your future income. You can write all expenses and profits per product sale on monthly/yearly basis.
Without having financial goals you won’t get any idea about your journey. So, i request you to write a business plan first before you start a business in 2019.
4. Identifying Opportunities & mistakes.
Writing proper business plan will help you to understand the future problems, mistakes and issues. Many startup fails because they don’t focus on future problems and possible solutions.
By writing business plan you can easily rectify your financial problems, management requirements, time management and common mistakes that will be solved before it happens.
5. Professional Documents or Plans.
Business plan helps you to identify all things about product productions, administrative and marketing strategies. You need to write marketing and financial plan in order to get success in your business.
6. You will Understand Budget.
Many new entrepreneurs are going to shut down those new startup just because of lack of money. If you won’t focus on your budget then, you will see many issues in future.
Like, you will struggle for advertising expenses, product production expenses and other basic expenses. Business plan will help you to write proper budget for your first 3 years and you can easily rectify your money in your business.
7. Return on Investment.
ROI is very important component of your business and business plan too. You started your business to get profit and success. If you won’t get your return on investment then, you will lose hope and try to quit your business. So, i suggest you to “write a business plan” about ROI.
- 40 Possible Reasons You Need a Business Plan for Your Startup
Here, you have to cover all profit margin and actual investment. If you are looking for investors or bank loans then, Return on Investment document is vital for your business proposal.
8. Understand business expenses.
Business plan will help you to know all about your cash flow, liquidity and ability to repay debt. You will understand how much money you need to spend on which type of works.
So, you can easily understand your expenses and profits in future. Also, i suggest you to “write a business plan” for your expenses and profit margins on monthly basis.
These are few main reasons that says you must need to write a business plan for your startup. If you have any questions on writing a business plan then, feel free to write it in comment box. Thanks for reading this article.
1 comment
Agree with all 8 points and first 2 points is very important 🙂