Your Business Roadmap - Why You Need A Business Plan

Why You Need A Business Plan

Bev Clement - www.silkroadconsultants.co.uk

Why do you need a business plan?

You need to plan and budget for your new business if you don’t want to be in the 66% - 95% of businesses that fail. It is too easy to start a business online but you need to follow some of the old guidelines if you want to be successful. If you don’t have a plan in place then you'll have no idea where you are heading, and even less of an idea how to get there.

If you have a predetermined goal, then you'll be making positive steps to reach that goal. You know that it might be in the distance but while you keep your eyes on the goal you'll be able to reach your destination. As you keep your focus on the goal you'll make changes along the way as you find ways of saving money, a quicker route but the end goal will always remain in focus.

It is like taking a journey in a car, you know how long that journey will take but you'll always be looking for any shortcuts to get there. You know that you will arrive sooner rather than later and if you can find a shorter route then you will have more money in your pocket as fewer expenses have occurred on the journey. Every business should have a business plan but you should also take the necessary action to see the plan implemented.

There is nothing worse than spending many hours drawing up a business plan and then putting that plan in a drawer or storing it on a computer never to see the light of day again. That business is guaranteed not to be one of the successful businesses. This is why you will need to have not only a business plan but also need to take action.

If you are running a business there will come the day when you need some extra finance to help your business grow. If you want to run an offline business then that extra finance might be needed for you to start your business. You would be thinking in terms of a loan or a partner to help launch your business.

But online the initial costs are lower because you will have a lot of the tools required to run your business already. It will be later as you plan to expand that you will need to start looking for this financial help.

Having a good business plan in place will help you. You will talk to perspective investors or banks with your goals. You will show them how profitable your business has been, and the potential of the business during the coming years.

Statistically a business plan makes sense because research has shown that a company with a plan will increase its profit margin to around 54%; whereas the same company not using a business plan would only have a profit margin of around 35%. With just that one statistic it should encourage you to have a business plan in place.