It’s a misconception that you write a business plan solely to obtain financing. The reason for writing a business plan is that it’s an important tool for the business owner.
A good business plan will have five benefits. One, it draws a clear picture of your business objectives. Two, it improves your understanding of your industry and business. Three, it examines your potential strengths and weaknesses. Four, it helps prospective investors or lenders better understand and evaluate your business. Five, it offers a chronology of events and financial milestones, against which you can compare your actual results.
Be prepared to cover the following:
Developing a plan isn’t a one-time task. A company expansion, new products, a different marketing slant, increased competition – these all signal the need for a new plan.
Often, it can be easier to start up a business than it is to move up to the next level. As a business grows, entrepreneurs face constant challenges, such as the need to change roles. Instead of wearing many hats, as most entrepreneurs do when starting out, owners must identify the tasks that only they can do, and cultivate others to be the experts in particular areas of the business.
For a fast-growing operation, a staffing plan should go hand-in-hand with a business plan. What skills do you need as the business evolves? How will work be organized? How do staff measure up? What type of employees are needed to meet your goals?
Without careful management, growing businesses hit road bumps along the way. While revenues soar, cash flow might be starved, costs can overrun, staff can become overburdened, and quality can decline.
Businesses that plan for growth instead of just allowing it to happen end up adapting effectively to the changes that come their way.
Visit Royal Bank for more on getting your business off the ground and growing.