Why You Need a Business Plan
Ready to get down to business? But are you really, really ready? Got a business plan?
While writing a formal plan might not be at the tip top of a small business owner’s already full to-do list, it might make the difference between thriving and struggling. According to a study cited in the Harvard Business Review in 2017, entrepreneurs who wrote a plan were more likely to succeed than their non-planning counterparts.
Starts Things Off Right
A blueprint does a lot more than help you flesh out where you want to go; it pushes you to determine the best way to get there. Having a clear, carefully written plan before you break proverbial (or literal) ground may help you stay organized, on task, on schedule, and even help you manage stress during the early days of building a business. By sizing up the competition, mulling over marketing plans, and buckling down on the budget, you’re not just filling in the blanks, you’re writing yourself a blueprint to business success.
Provides Measurable Goals
A solid business plan will help you define the benchmarks to measure your overall progress. Most new business owners want to “be successful,” but how do you measure success? A good business plan forces owners to define their goals and choose how they will track and measure their progress. Your goals should change as you grow and should be reviewed regularly. No goal is too big or too small! Your measurable goals might include:
- Receiving 10, four- and five-star reviews online for customer service
- Increasing your online store traffic by 30 percent by the end of the year
- Making enough in sales to say goodbye to your side hustle
Keeps You Motivated
Now and then, even the most-driven owner may feel unenthusiastic or exhausted by work. The occasional rendezvous with your business plan can reignite the spark you had in the beginning and remind yourself why you’re working so hard. In addition to seeing progress you’ve already made, a business plan can help keep your eyes on the prize, when they might be drifting to the defeats.
Helps in Securing Funding
Your set-up may be small for now but if you plan to grow, a business plan may be an essential piece of the puzzle when it comes to securing financing. Investors, lenders, and grant makers all want to see your vision and how you’ve built your business before signing that cheque. Sharing a clear, viable plan with financials is a great way to get potential partners as pumped as you are.
Creates a Contingency Plan
No business owner has an infallible crystal ball for telling the future, but a business plan can be a great way to strategize for the future and plan for potential setbacks. Variables like the economy or changing customer tastes may put obstacles in your path, but thinking ahead of time of how you’ll deal with them can save you time and stress later.
Whether you’re freshly inc’ed or an old pro, a business plan can give your new company structure, and reasons to be excited. And nobody is more excited about your business than Ownr is, so when you’re ready to launch, we’re offering you a special promotion that will save you money on getting started! All you have to do is register or incorporate your business with us and open an RBC Business Banking Account. Get started here.