5 Benefits of Business Planning – Planning your Roadmap to Business Success
Business Planning forms an important cornerstone of any business, big or small. However, it is one of those areas where small and medium business battle to get down and get their business plans done.
It takes time and can be a painful experience, yet business plans add incredible value to the success of business as it creates the roadmap for business success.
The internet contains many useful articles and free resources, examples and business planning templates.
What is a business plan?
A business plan is a documented plan that describes:
- your business – what you do, what your vision is and your business values,
- what sets you apart from your competitors and why are you uniquely qualified to succeed;
- the market it operates in – who are your customers, your competitors and the products and services you provide to your customers,
- your industry sector and what influences your industry sector;
- your objectives, goals and targets;
- the strategies you have in place to achieve these objectives, goals and targets;
- what are the risks and how will you mitigate and manage these;
- how to explore and optimise any opportunities;
- your team, strategic and operational;
- financial modelling.
Why develop a business plan?
Why you prepare business plan depends on the reason why you need a business plan. You business plan can be a plan, for example, to:
- develop and focus your business strategy and focus;
- take a loan;
- apply for grants; or
- find investors in your business.
The complexity and level of detail depend on the purpose of your business plan. But all successful businesses have a business plan and a road map to success.
Who needs a business plan?
All businesses, big or small, should have a business plan.
Without it, you will be “wandering aimlessly“.
That said – your business plan is a plan for YOUR business and has to be unique to your business.
When to involve third parties in your business plan?
We recommend to get assistance, when:
- you have not done a business plan before and don’t know how or where to start;
- you want to brainstorm ideas and different directions for your business;
- when you require expert advice in a particular field, such as venture capital raising, branching out into other countries;
- you have different business areas or departments involved in setting the business plan and you require a facilitator to manage the process.
However, you cannot outsource the responsibility, accountability and ownership of the business plan.
READ MORE: Eight Tips for Successful Brainstorming>>
What are the 5 benefits of business planning?
#1. Business planning is a focused process where by you determine your business end goal and you map the journey
“A good plan is like a road map: it shows the final destination and usually the best way to get there.” H. Stanely Judd
#2. Business planning determines what actions and preparations you need to take to reach your end goal.
“By failing to prepare, you are preparing to fail.” Benjamin Franklin
#3. Business planning forces you to stop and plan but does not require perfection – business is dynamic and fluid and therefore your business planning has to take into consideration how you will adapt to the dynamic and changing business world.
“A good plan today is better than a perfect plan tomorrow.” Geoge S. Patton
#4. By doing business planning, you determine and work through the different options available to your business to be able to grow and succeed. Business planning involves identifying and managing both risk and opportunities.
“Planning is a process of choosing among those many options. If we do not choose to plan, then we choose to have others plan for us.” Richard I. Winwood
#5. Business planning takes the ideas in your head and puts it into writing. By documenting your ideas and opportunities and linking it to a concrete plan, goals and actions – you commence the journey to business success.
“Reduce your plan to writing. The moment you complete this, you will have definitely given concrete form to the intangible desire.” Napoleon Hill
Links to free business planning resources
To find great resources, you only have to google the term “business plan” or “business planning”.
The variety of free resources include:
- government business websites – for example, Business Tasmania;
- banks – for example, NAB;
- entrepreneurial resources – for example, Entrepreneur.com or Forbes.com.
Please note that we have no affiliation to any of these resources nor do we recommend any of them as such. It is a good starting point however when you have to bootstrap or have to get some ideas on how to do business planning.
Are you still stuck?
We have done business planning for many years, both as part of large corporates and small business. To add to this experience, we also facilitate risk workshops and know how to include this as part of your business planning process.
We can assist you with your business planning.
Will a business plan make a difference to your business and your business success?
Have a great day!