In the last quarter of the year many people are thinking of starting a new business, expanding their current business, or getting new business deals in the upcoming year. With that in mind, you should be making plans for those initiatives now. This is where it becomes necessary to start drafting your business plans, strategic plans, or business proposals.

The business plan is a foundational document which can be a game changer for your business. You cannot build a house without a foundation so why would you want to build a business without a plan. According to Benjamin Franklin, “If you fail to plan, you plan to fail.” Therefore, in this article I will focus only on the business plan. 

What exactly is a business plan? It is a roadmap that gives the needed focus and direction to achieve business goals, profitability, and sustainability.

 

What exactly is a business plan? It is a roadmap that gives the needed focus and direction to achieve business goals, profitability and sustainability.

Writing a business plan is a critical step for any entrepreneur looking to start or grow their business. Here are several reasons why it's essential:

Clarifies Vision and Direction: A business plan helps you to clearly define your idea by getting them out of your head and on paper which allows you to set clear direction for your company. It is an opportunity to thoroughly think about all areas of the business and make you accountable. Therefore, it increases your chance of carrying out your plans and bringing your business to a reality.

Attracts Investors and Financing: Potential investors and lenders will want to see a detailed business plan before committing any funds to your venture. A well-crafted business plan demonstrates that you have thoroughly researched your market, understand your competition, and have a solid strategy for achieving profitability. This can significantly increase your chances of securing the necessary funding.

Identifies Potential Challenges: The process of conducting extensive market research and competitive analysis can identify potential challenges and risks that your business may face, allowing you to develop strategies to mitigate or manage these risks before they become problematic.

Sets Milestones and Goals: A business plan outlines specific, measurable goals, and the steps needed to achieve them. This provides a roadmap for your business, helping you to stay focused and keep on track. This ensures that you can monitor your progress and make necessary adjustments to stay aligned with your objectives.

Improves Decision Making: With a business plan in place, you have a reference point for making informed decisions. Whether you are considering a new marketing campaign, expanding your product line, or exploring new markets, your business plan can provide valuable insights and data to guide your choices.

Enhances Communication: This document can serve as a communication tool for internal and external stakeholders. It ensures that everyone involved in the business, from employees to investors, understands the company's goals, strategies, and expectations. This can lead to better collaboration and a more cohesive effort toward achieving your business objectives.

Rental, Visa, and Business Applications: You may require a plan to rent a commercial building, apply for certain business licenses or permits, and to immigrate under the business immigration programs.

Business Opportunities: You may need a business plan for partnerships, mergers, or other joint ventures and to purchase a franchise. 

Facilitates Strategic Planning: Regularly reviewing and updating your business plan keeps your strategic planning process dynamic and responsive to changes in the market or industry. This ongoing process helps ensure that your business remains competitive and can adapt to new opportunities or threats as they arise.

A well-prepared business plan is not just a document for securing funding - it is a vital tool for guiding your business toward long-term success. By providing a clear vision, identifying potential challenges, setting achievable goals, and improving decision-making, a business plan lays the foundation for a thriving enterprise.In a nutshell, the business plan analyzes the overall business opportunity and is based on various projections spanning over a longer term. It should be the starting point for any business and every business should have one.

Should you write your own plan? It would save money to do your own plan. However, if you do not have the time or expertise and can afford to hire the services of a professional it is advisable to do so. Please remember that if you hire a professional, best results are achieved if it is a collaborative effort. You are the expert in your business which means you need to provide the required information to the business plan writer. Your consultant is there to guide you and use their expertise to help you think critically about your business but it is your plan and you should provide the specific details about your business. The plan may need to be changed a few times until it reflects the exact situation of your unique business.

Sharee is the founder and owner of REAP Business Solutions which offer business plan, strategic plan, and proposal writing services. She is located in north Edmonton. REAP also provides business planning consulting services. Sharee has a Master’s in Business Administration and is passionate about sharing information about businesses as well as how to succeed in business.