Skip to main content

10 REASONS WHY STARTUP ENTREPRENEURS MUST HAVE A BUSINESS PLAN

Most start-up entrepreneurs view a business plan as only a fund raising instrument to submit in bank or any other financial institution. But truly a business plan is a tool for understanding how to put together everything in your business. It is useful to monitoring progress and keeping the business accountable. It also helpful in making sales strategy, recruitment and overall financial planning. Business plan is a written document that describes the nature of business, sales and marketing strategy and a financial calculations with a projected profit and loss account.

According to Investopaedia, A business plan is a written document that describes in detail how a business, usually a new one, is going to achieve its goals. Sometimes, a business plan is prepared for an established business that is moving in a new direction.

Here are 10 critical reasons to have a business plan.

To Define a New Business Venture

By creating a business plan you will be able to define the new business venture properly. Needs of consumers that are identified for a product or services and you will be going to proceed to develop that idea

To Check Business Feasibility

By writing a business plan with every detail you can determine the feasibility of your business. You can create a financial model to project the ROI from the every realistic aspects.

To Calculate Startup Investment

A business plan will help you to calculate and understand properly the required startupbudget. Actually it will help you even to take decision whether you are having that fund or you need to go for securing investment from outside.

To Secure Investments and Loans

Investors and financial institutions need to see a business plan before they are going to invest. Your business plan can only describe that your business ideas is enough viable to get funding.

To create an Effective Marketing Strategy

By writing a business plan you will be able to create a effective marketing strategy. It involves to identifying promotional opportunities, evaluating the market opportunities, researching, analyzing and identifying the target audience

To Study about Competitors

By writing a business plan you will be able to research, analyze and understand the market competitor properly. By monitoring competitors you will be also able to know their activities and you can start to anticipate.

To monitor day-to-day operations

A business plan serves the purpose to have an effective tool to monitor your day-today business operation. It will give you confidence by showing whether you are in right track or there is something you need to think about.

To Calculate Business Performance

The most important aspect of a business plan is it acts as a growth engine and shows you the reviews about your business performance.

To Create HR Manual

A business plan will help you to create an organization structure and HR manual which is immensely effective for manpower planning.

To Attract Top-Professionals to Come

A business plan will give an overview and clear vision to talented people. Also you will be able to set specific objectives for them.

By keeping update your business plan regularly you will be able to take into account the economic climate of the industry. You will be more ensured you always have a clear idea about the direction you are taking your business in.

Labels:

Comments

Post a Comment

Popular posts from this blog

How to Make Money Selling Goods on Jumia

Regardless of what you sell in real life, the truth is anyone can sell anything online. It’s even more interesting when you discovered that you can sell your product on Konga or Jumia. For the business tycoon, business women/men and to those who are wondering where to sell your products, Konga and Jumia has made available a platform to display your product to millions of customers on their site. You don't have to be an internet guru to do this: Today, let's get the details on Jumia Sellers Program..... Jumia Sellers Program: Jumia Nigeria offers an online platform for individuals and companies to sell their goods, although many people are unaware of this, Jumia itself just like most ecommerce websites sells only very few goods, majority of the goods are sold by traders registered by Jumia who then pay a percentage of their sales to Jumia known as commision which is currently from 3 – 15% of the selling price of any product. Jumia have more than 3 million visitors e...
Post a Comment
Read more

Signs you are ready for entrepreneurship

You have brilliant ideas for a new business plan on something you have always been passionate about. After considering all the possibilities and challenges you might have to face in the future, finally you decide to leave your day job and swerve your way into a full-time entrepreneur. From managing financial plan, designing the product and testing the prototype, to testing the potential market, you have prepared everything carefully. But then you start questioning yourself, are you really ready to launch your business? Starting a startup can be an exhilarating experience that will not only drain your energy, time, and money, but also your emotions. As a newbie in the entrepreneurial world, you will more likely feel worried about the future of business you are about to introduce. The equal chances of gaining phenomenal success or total failure often leads to a feeling of doubt and uncertainty about the path you choose. While you might have prepared a detailed and thorough product design...
Post a Comment
Read more

Make your goals SMART

SMART Goals Goals and objectives motivate people and help them to work in the right direction. This helps them to focus on short term goals by giving them enough time to achieve them. In other words, the strategy for your goals should be  SMART , which when elaborated in this context means − ●        Specific  −  The  first thing is to be sure about your goals. Like imagining your goal for 10 minutes every day. ●        Measurable  −  Set a time by which you should probably reach your goal. Like becoming more productive and increasing some percent of productivity is not specific. ●        Attainable  −  Make goals that you can achieve within the given timeframe. For example, if you are thinking of doubling your salary within a month, it is not possible. ●        Relevant  −  The  goals you aim should be like your s...
Post a Comment
Read more