{"id":1207,"date":"2018-09-11T05:46:00","date_gmt":"2018-09-11T05:46:00","guid":{"rendered":"https:\/\/blog.kredx.com\/?p=1207"},"modified":"2023-10-26T06:02:15","modified_gmt":"2023-10-26T06:02:15","slug":"5-reasons-why-every-small-business-needs-a-business-plan","status":"publish","type":"post","link":"https:\/\/www.kredx.com\/blog\/5-reasons-why-every-small-business-needs-a-business-plan\/","title":{"rendered":"5 Reasons Why Every Small Business Needs A Business Plan"},"content":{"rendered":"\t\t
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Most business owners have a notion that a business plan is solely for fundraising events. But they couldn\u2019t be farther from reality. Bootstrappers in particular rarely think of a business plan as being important to their business\u2019s survival. A business plan is like the underdog sibling of a great business idea. The truth of the matter is that the importance of a business plan is undermined and this shouldn\u2019t be the case. Every business, big or small, needs to have a plan in place because it is so much more than just a fundraising tool.<\/span><\/p>

Why you need to have a business plan for your company<\/h2>

Gives Your Business Direction<\/b><\/p>

You have a million dollar business idea. You\u2019ve found just the team to help you get started on it too. No doubt it is exciting to immediately start working on it, but it\u2019s always wise to hold your horses and chart out a plan. A business plan serves as a roadmap for your business\u2019s future. You can draft your timeframes, goals and what you need to be working towards to realise your business vision. Every time you feel like you\u2019re losing track, just take a look at your business plan to help put things into perspective.<\/p>

Makes You Take A Closer Look At All Aspects<\/b><\/p>

A business plan helps you be thorough with the main aspects of your business and iron out any kinks you find. By going over and researching everything to do with the business you are forced to think hard about important factors such as equipment, pricing, licensing, facilities, etc. Remember to also make a cash flow forecast so that you know what to expect in terms of money. It\u2019s always better to overestimate expenses than underestimate so that it doesn\u2019t throw you completely off-track.<\/p>

Makes You Accountable<\/b><\/p>

By making a business plan you track your own progress even if life gets in the way. Not all entrepreneurs can afford to quit their regular jobs to focus full-time on their business ideas. Most of us have\u00a0regular 9-5 jobs after which we devote time to our business till it actually kicks off and begins reaping profits. During all this hullaballoo it is only natural to leave your business idea on the back-burner and before you know it, you\u2019re off by many months and eventually feel discouraged to work on your business. To avoid this, set tangible timeframes and goals that are achievable and review them from time-to-time to not lose track.<\/p>

Helps With Funding<\/b><\/p>

This is the most common reason why many business owners or entrepreneurs create a business plan in the first place. Any investor or VC you approach for funding will ask for your business plan first before they listen to your pitch. Why? Because it shows that you\u2019ve thought it through, that you\u2019re dedicated to making it succeed and that there is a real need for your product or service in the market.<\/p>

Tip:<\/strong>\u00a0Use data and numbers where possible. Cold hard facts such as market research, cash flow forecasts, and early orders make more of an impact than random statements.<\/em><\/p>

Gets You Ready With Plan B<\/b><\/p>

Sure, nobody wants to think of their business failing, but it\u2019s important to have a backup plan in place. Building a business from scratch only to see it fail is not something anybody wants to see. So, what is your best chance to save your dream project? Have you thought of an alternative income to keep your business running for a bit till it picks up again? Plan ahead and have a contingency plan as a backup in case the worst happens.<\/p>

Don\u2019t just think of a business plan as a fundraising tool. It is important to plan out your business to ensure your company\u2019s success.<\/p>

This is Part 1 of our two-part series on Business Plans. Stay tuned for our next post on How To Write An Effective Business Plan For Your Small Business!<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Most business owners have a notion that a business plan is solely for fundraising events. But they couldn\u2019t be farther from reality. Bootstrappers in particular rarely think of a business plan as being important to their business\u2019s survival. A business plan is like the underdog sibling of a great business idea. The truth of the […]<\/p>\n","protected":false},"author":1,"featured_media":5602,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35,155],"tags":[],"class_list":["post-1207","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-msme"],"_links":{"self":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/1207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/comments?post=1207"}],"version-history":[{"count":10,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/1207\/revisions"}],"predecessor-version":[{"id":16417,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/1207\/revisions\/16417"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/media\/5602"}],"wp:attachment":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/media?parent=1207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/categories?post=1207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/tags?post=1207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}