I Am Starting My Own Business - Why Do I Need a Business Plan?

If you want to start a business then the words4. Gives you the numbers - all start-ups need a budget
"Business Plan" will haunt your dreams for the nextand the business plan allows you to put a realistic
few months! If you have never produced any piece ofnumber to that vital statistic. You can't make any
writing more daunting than a postcard from Kos thendecisions until you know that number, and only the
the very thought of producing this all singing all dancingbusiness plan can give it to your accurately.
tome can make you feel sick! So sick in fact that you5. Shows you who your competition is - A vital part of
may decide you don't really need one - after all youany business plan involves assessing the competition
only want to open a little shop selling home made pateand finding fiendish ways to put your business ahead
and gourmet pickles, or capitalise on your needleworkof them. This analysis can trigger strategies to bolster
skills and flog designer dog coats.your marketing plan (yes, you need one of those too!)
Sorry, you still need a plan and this is why......and identify parts of the market where your skill set
can give you an edge. Equally it will show you if you
1. Feasibility study - we all get too close to our ownare entering a super crowded market place where
ideas and a business plan even in its most basic formyou haven't a hope in hell of competing which is the
acts as a feasibility study on any business idea. Duringbusiness equivalent of swimming in a shark pool
the course of completing the plan you may find thisbalancing a bucket of chicken on your head. It could
idea just hasn't got the legs to run, and equally, if yousave you much pain to run that analysis now!
can't finish a business plan you've got poor hopes ofThese are just the most basic reasons for having a
lasting the course once you start a business! Cruel butbusiness plan! This is before we have even considered
true.how a plan will influence any application for funds, how
2. Finds additional income streams - you may havea plan will map out your growth and set the goals for
had a brainstorm and come up with a fantastic ideathe next few years and how a plan will impact on your
but to realise the true potential of any business youprofessional development.
need to explore all the possible ways it can generateI'll go into the nuts and bolts on these and other issues
income and the business plan allows you to do this.in further articles, along with a list of must have
3. Takes you from idea to opening day - if your greatinclusions for a comprehensive business plan but for
business idea is in its infancy starting on the businessnow all I can say is you really need one, get your head
plan can show you how to help it grow up. A businessround the idea and be prepared to spend some time
plan can act as a blueprint from idea to opening andon it and complete it is stages if necessary, but
helps you identify the stages you need to go throughcomplete it you must!
before the first customer can come in through yourHow do you eat an elephant? One mouthful at a time!
newly open door.