Many entrepreneurs subsist in small offices pondering how to obtain the next client. The problem emanates from a lack of planning. Given that 98% of most business fails in the first five years and the odds decrease marginally in the proceeding years, planning is the best means to ensure financial feasibility.
There are a multitude of reasons to develop a plan; here is the top five:
1. Developing a plan takes the information from your head and produces a structured format to ensure your business has feasibility. A business plan enables a proprietor to streamline operations and delete tangential items.
2. If you want to obtain venture capital you must have a formal plan. No lender will provide any money without one.
3. Planning enables entrepreneurs to gain focus. Too many get mired in reviewing capital and income yet the most imperative part of planning and often forgotten – customers. Entrepreneurs must develop an acquisition and retention plan.
4. To a certain degree a formal business plan assists in producing goals and standards. The business plan helps to produce entrepreneur accountability.
5. Business planning helps to develop buzz. Review any business plan and a significant portion of the plan resides with marketing. Planning forces entrepreneurs to choose a target market, integrated marketing communications to create value and tactical activities to grow brand. Producing this vital plan helps with budgets and prioritization.
Two vital components for business growth are passion and conviction. Yet the best business will fail without proper planning and development. Take the time to visit a consultant, business college or community incubator to help develop your plan. The investment of time and money might just be the tools needed to give your business foundation and the kick start needed to thrive.
