Why Write a Business Plan - Eight Great Reasons!

Remember back to your high school days and thethe stakeholders that will help you launch and grow
memory of being assigned the task of writing a 30your business - suppliers, partners, customers,
page term paper in one of your classes. If you wereemployees and board members.
like most of your peers, the mere thought of this4. Helps companies gain a more thorough
assignment brought tears to your eyes.understanding of the opportunities and challenges in
Fast forward to today. You are now an entrepreneurtheir market and industry, and craft strategies and
starting a business or seeking outside capital to growtactics that will directly respond to customer needs.
your company. You realize with dread that you are5. Your company has competition, and ultimately your
going to have to write a business plan to advancesuccess will be determined by how you set your
your company forward. In fact, the mere thought ofcompany apart from that of your competitors. A
writing a business plan most likely conjures upbusiness plan empowers you with valuable competitive
memories of your high school days preparing terminsight and enables you determine how to differentiate
papers.your products, services and value proposition.
Don't fear. Resist the urge to run. Yes, I admit that6. The better you understand your business the more
developing a plan is a lot of work. However, theeffective you will be in creating the right management
business planning process has so much to teach youteam for your company. The landscape is littered with
about your business and the opportunity in front of youcompanies with great products and huge markets that
that it is well worth the time and effort required to seeeither didn't make it or didn't reach their potential
the process through to the end.because the management team lacked the
Experience has taught entrepreneurs and smallappropriate skills, talent or experience to capitalize
business owners that the benefits of the businessupon its opportunity.
planning process include:7. A well thought through business plan will lay out a
1. Providing you a 360 degree view of your company,comprehensive strategy and time-line for
allowing you to examine its viability and potential forimplementation and operations of the company in the
growth and success.early and emerging stages of growth.
2. A business plan is powerful tool for ensuring that the8. Allows you to examine "what-if" scenarios and
founders and management team are committed to acreate back-up plans should your Plan A turn out
common set of goals by forcing individuals to reconciledifferently than you originally expected - a situation
any differences they may have into a unified plan ofwhich happens quite frequently.
attack.Enjoy the business planning journey. Take time to write
3. A business plan is an excellent method ofa business plan that you are proud to put your name
communicating your vision, mission, values and goals toon. It is well worth the effort.