3 reasons why you need a business plan
There’s a lot of contradiction around this topic. To business plan or not to business plan, that is the question! Some will tell you that you don’t need a business plan because they’re only for large businesses that plan to attract investors. I disagree with those who say you don’t need a business plan at all. Instead, you should have a small business plan that only covers enough to give you (and your team if you have one) a sense of direction. Making decisions related to your business is so much easier when you have the guidance of even a one-page business plan. Let’s dive into how you can lay out your mini business plan.
1. A business plan provides direction.
Writing a business plan provides you with the opportunity to create your own map to success and lay the foundation for your business. Consider the following questions:
What do you define as successful for your business? Is it when you’re making $100k a month? Is it when you’ve impacted the community in a certain way?
What are your goals?
What steps will you take to achieve these goals?
Why did you start this business in the first place?
Are you passionate about this business? Why or why not? Should you change the direction of the company so it becomes more in line with your passions?
What projects do you need to complete in order to reach your goals?
What are the budgets for the projects?
What tools and resources will you need to complete these projects?
2. A business plan is motivational.
“What’s the point of all this, again?” That, my friend, is a question I’ve asked myself many times during my entrepreneurial journey. I felt lost and unsure of why I started a business, where I wanted the business to go, and what I needed to be doing in order to see that success. By having a business plan that outlines all of that for me, I can find my motivation again. Having a business plan is basically like having a document that gives you a pep talk whenever you need one.
3. A business plan can answer your questions.
“What am I even doing?” Another question I find myself asking a lot. I can refer to my business plan and know that the big picture is I’m trying to make money. How? By the income streams I have outlined in my business plan. Okay, so how do I market these? Through email and content marketing. Okay, that means I need to grow my email list and create content. What should the content be about? It should relate to my products I’m trying to sell. Do you see how a business plan can keep you on track?
Now go create a business plan of your own!
Alright, my friend. Now you know the value of having a business plan. The next step for you is to write your own business plan that lays out what you’re doing, why you’re doing it, and how you’re doing it. Once you have this, you can refer to it whenever you need guidance.