by Eric Blair |
Every day, we get many ideas pop into our heads and we brush many of them off. The same way, thousands of business ideas cross the minds of many people but only a few people act on it.
If you are one of those who just found their moment of clarity and are ready to execute one of the brilliant ideas they have, wait a minute, pump your breaks and drive slow genius.
This is because, if you are like most people, everything is up there in your head with no proper research done. You might not believe it because you have not tried yet, but as soon as you begin to put down a plan on paper, you realise that there are a lot of things and areas which have not been given proper thought. Here, we are going to discuss the importance of a business plan and before you quit your job please read more.
Life itself does not always go on as planned however we still plan our lives and although we don’t always get the intended end results, many other things turn out as planned. For instance, the medical degree, or the football career, this would not have been possible without proper planning.
Now, taking the life example and applying it to a business start-up, we discover that although everything might not go according to plan, it is important to have it nonetheless to know the overall direction of the business. Without a plan, the direction of a business would remain vague and under many circumstances, the business would likely fail. A plan brings out what needs to be done to achieve the goals of a business simplifying the process of what the business intends to offer e.g. products lines and specific services to be offered.
This is because, if you are like most people, everything is up there in your head with no proper research done. You might not believe it because you have not tried yet, but as soon as you begin to put down a plan on paper, you realise that there are a lot of things and areas which have not been given proper thought. Here, we are going to discuss the importance of a business plan and before you quit your job please read more.
Life itself does not always go on as planned however we still plan our lives and although we don’t always get the intended end results, many other things turn out as planned. For instance, the medical degree, or the football career, this would not have been possible without proper planning.
Now, taking the life example and applying it to a business start-up, we discover that although everything might not go according to plan, it is important to have it nonetheless to know the overall direction of the business. Without a plan, the direction of a business would remain vague and under many circumstances, the business would likely fail. A plan brings out what needs to be done to achieve the goals of a business simplifying the process of what the business intends to offer e.g. products lines and specific services to be offered.
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Many things can change over time and with a business plan, the future vision of a business has been determined at start-up. As a result, changes in trends, sales growth, and many other factors would have been planned for before-hand, and effective strategies would have been developed to cope with such changes.
For instance, an increase in cost of raw materials can affect the price of the final product, and with a business plan, strategies to cope with such changes would be in place including how such changes might affect profitability however, without a plan, such sudden changes would likely catch the business owner off guard which could run the business into the ground.
When finance is needed to start-up a business, a great idea without anything substantial to go by would not be good enough to attract investors. However when a plan is in place showing the direction of the business, the profitability ratio, the risks involved, and how to cope with such risks, an investor is more inclined to take some time to consider your offer.
Furthermore, a plan also shows that you are ready for business as soon as you get the finance needed, making it much easier to present it to potential investors as soon as you find an opportunity. To sum it up, even when finance is readily available, a plan acts as the blueprint of the business you intent to build. Now you know your milestones and can refer back to the business plan to check your progress regularly.
I have spoken to some business owners who are basically surviving in their industries and most of them do not know how good they are performing until the overall profits or losses are in at the end of the month. They do not know their average sales monthly, or how to use their business statistics to their advantage and this has reduced their overall profitability. So please, before you quit your job to start up a business, ensure that you develop a plan and this would serve as a guide even after the business has been successfully established. Please leave your comments below. Cheers.
More: This is why you always get broke
More: Companies with the worst customer care
For instance, an increase in cost of raw materials can affect the price of the final product, and with a business plan, strategies to cope with such changes would be in place including how such changes might affect profitability however, without a plan, such sudden changes would likely catch the business owner off guard which could run the business into the ground.
When finance is needed to start-up a business, a great idea without anything substantial to go by would not be good enough to attract investors. However when a plan is in place showing the direction of the business, the profitability ratio, the risks involved, and how to cope with such risks, an investor is more inclined to take some time to consider your offer.
Furthermore, a plan also shows that you are ready for business as soon as you get the finance needed, making it much easier to present it to potential investors as soon as you find an opportunity. To sum it up, even when finance is readily available, a plan acts as the blueprint of the business you intent to build. Now you know your milestones and can refer back to the business plan to check your progress regularly.
I have spoken to some business owners who are basically surviving in their industries and most of them do not know how good they are performing until the overall profits or losses are in at the end of the month. They do not know their average sales monthly, or how to use their business statistics to their advantage and this has reduced their overall profitability. So please, before you quit your job to start up a business, ensure that you develop a plan and this would serve as a guide even after the business has been successfully established. Please leave your comments below. Cheers.
More: This is why you always get broke
More: Companies with the worst customer care
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