Business plans : Why the hype?
What is a business plan?
Put simply, this document serves as a road-map (a plan) that provides direction to the business. Read more here Business plan – Wikipedia
The myth about when a business plan is needed
The common understanding is that a business plan is needed when a business is starting out. It is more to obtain funding than anything else. But, I want to break the norm and say that it doesn’t matter what stage of business you’re in, whether a start-up or operating already.
Having a business plan will give you direction in the different aspects of a business and motivate and guide you towards growth.
It was Benjamin Franklin who said “If you fail to plan, you plan to fail.” So, it really doesn’t matter what stage of business you’re at.
5 reasons why you need a business plan
1. It gives your business direction
If you don’t point your car’s steering wheel in the direction you want the car to go, you’ll never reach your destination. Having a business plan helps you direct your staff, your money and yourself towards the goal of your business.
2. It makes business planning easier
In relation to a business plan, be able to answer the following basic questions:
– What product/service do you sell?
– How are you going to get your business known and sell your products or services?
– How are you going make the products or provide the service?
– Who will do what in your business?
Lastly, you must convert those questions into numbers for how much revenue and what expenses will be incurred to make that revenue.
Your accountant should be able to assist you with this.
3. It keeps you focused and helps with decision making
Having a well-laid out plan keeps you focused on your core business and from chasing the next shiny thing.
When you have the vision of where you want to see yourself in the future in black and white, it will help you make decisions that will keep you moving forward towards that goal.
4. It will help you get funding
Investors and financiers want to see what the money they are going to give you will give them back in return. This is called return on investment. Banks looks at how much interest you are able to pay. A prospective investor will want to see what percentage share in profits they can get.
When you have a plan about how you’re going to go about your business, it gives them a tool to make their decision to invest in your business or fund it.
5. It gives you a sense of achievement
When you write out your business plan, you set smaller goals and milestones that will tell you if you’re heading in the right direction.
Reaching these milestones and goals not only gives you a sense of achievement, but also motivates you to do more and better, which leads to growth!
How can we help?
We love our proactive approach that looks at a business plan as a living document that changes as your world changes.
Using technology, we not only put the plan together with you, but you get access to it anywhere and anytime. You can make changes to it yourself and monitor your business results against your plan.
Yes, we make preparing your business plan an exciting experience for you and partner with you as you grow.
Enquire about our tailor made packages to suit every stage and size of business and let’s get to work with you on your business!
Get in touch with us by sending an email to hello@santosbiz.co.za or Book a Call with us now.