The short answer to this question is YES.
Whether you are just starting your business or are already operational, the need to have some sort of business plan in place to guide your decision-making is something we can’t recommend enough. Although it is possible to start and operate a business without a plan, it’s very difficult to achieve success.
Your business plan is an outline of what you want your business to be. It provides an overview of your company including your mission, vision and values, describes your product/service offering, explores your competition and your market, lays out your strategy, defines your team functions and provides a fiscal plan.
Although some of this information may seem like it has little value, or like it’s not worth writing down… it all holds a great amount of value. We’ve broken down what we think are the top 3 reasons you need a business plan.
#1 It holds you accountable
A business plan acts as a reminder that you have a plan in place. You can compare your actual progress to your plan to see how successful you’ve been. It also helps to keep you on track and make decisions that align with your mission and vision. When you’re not sure which direction to turn next, your plan may hold the key!
#2 It provides a foundation for alignment
It can be difficult to explain your full vision and the plan for your business to others… but when you have a business plan, you don’t have to! A plan can help to communicate your thoughts and ideas to others to quickly create a sense of alignment and shared goals. This can be important for all stakeholders.
#3 It’s key for growth
At some point, (if not already) you will most likely want to grow your business. Having a plan set out will help make this process easier. You may have already planned for growth, or you may just have to make some small adjustments or additions to your plan. In addition, it will be absolutely vital if you require funding or investment.
To recap: yes, we believe a business plan is an important tool to help guide your business to success. That being said, there are many different ways that a business plan can be done, and the traditional ‘report type’ business plan may not be how you choose to layout your plan. The point is that you think through your business and create a plan for where you want to be and how you’re going to get there!
Need help creating or updating your business plan? Contact us today to start planning for the future of your business.