1. A business plan will help you define your business, as it exists today. Your plan allows you to look at your business objectively, which is essential for making strategic decisions and setting specific and realistic goals for the future.
Virtually every activity you do requires some planning. Although some of the activities you routinely engage in daily may not seem planned, they usually are in one form or another. Whether it’s a single activity or some bigger project, they almost always require some level of planning on your part. So, why should your business be any different? Although some people downplay the importance of having a business plan or claim that it has no value whatsoever, I disagree!
2. Entrepreneurship is not without its risks. In the traditional workplace, you receive compensation for time worked, but in the world of entrepreneurship, you are taking a calculated risk in hopes of gaining a calculated reward. Although proper planning will not eliminate risk, it can help minimize it.
Many aspiring entrepreneurs have great business ideas, and they think to themselves, “Okay, so I have this great idea, but now what?” If you are reading this post, and are finding yourself in a similar situation, I encourage you to sit down and start drafting a plan. Initially, you may have no idea what you are doing strategically, but if you force yourself to put your ideas to paper, you will begin to see organization and structure behind your ideas. Although your plan may be extremely informal initially, your future business will begin to become tangible.
Once you have your informal plan in place, begin to organize the information into a structured format, and do research when necessary to add clarity and value to your plan. If you are unable to have an expert help you with your plan, there are numerous resources available on the internet that will help you draft an effective plan for your business idea.