Meeting up with organizations vision can be achieved by having a good business plan which enhances profit making. Your business would be greatly affected by a competitive environment because you have created an uncontested market space by having a good business plan.
Business plan is a formal statement of a set of business goals, the reasons they are believed attainable, and the plan for reaching those goals. Business plans may be internally or externally focused. Externally focused plans target goals that are important to external stakeholders, particularly financial stakeholders.
An internal business plan is often developed in conjunction with a balanced scorecard or a list of critical success factors. This allows success of the plan to be measured using non-financial measures.
Listed below are genuine reasons why you should have a business plan.
* A good business plan is used to set specific objectives for managers. Good management requires setting specific objectives and then tracking and following up.
* It necessitates the sharing of strategy, priorities and specific action points.
* It helps to decide whether or not the business needs to be relocated.
* It determines whether or not to hire new people.
* It aids the decision making process within an organization.
* It makes it possible to share and explain business objectives with your management team, employees and new hires.
* It is useful in the development of new business alliances and policies.
* It promotes business selling.
* It necessitates business valuation.
* It helps to create a new business.
* It promotes the investment in your business, whether it’s a startup or not. Investors need to see a business plan before they decide whether or not to invest.
* It is used to back up a business loan application.