For anyone that owns a business, at any stage of development, planning for business success is vital. A business plan is an essential tool to ensure that the resources and assets of a business are strategically applied and act as a blueprint for success and sustainability. There are many great benefits behind having a business plan! Top 10 reasons for making this a priority:
1.Compliance
When preparing a business plan you are required to address compliance issues such as OH&S, Industrial Relations, Insurance, Permits, Licenses, Contracts, Taxation and so on. Documenting all this key information in one place brings structure and peace of mind that you are meeting your legal obligations and have everything organized in the one place for quick reference.
2.Risk Management
Identifying the risks in your businesses and formulating strategies to mitigate those risks not only gives you peace of mind, but helps you identify what you need to implement and enables you to troubleshoot quickly when things don’t quite go to plan. By understanding the risks in your business you can better manage them to ensure your path to success is as smooth as possible.
3.Structure
A business plan should be a well structured and labeled document that grounds information in a logical format. The plan should be in sections, which makes it easy to follow and maintain. The Executive Summary that sits at the front of your plan is an overview of the detailed information contained in the sections of the plan. Supporting information is indexed at the back of your plan as reference material and evidence to back up your claims throughout your plan. The last section of your business plan is an action plan with timeframes to help you implement tasks to make your plans a reality.
4.Research
Undertaking extensive research relating to your business and the marketplace enables you to critically assess your position, competitors, customers and the viability of your business.
5.Innovation
Identifying changes and trends in the marketplace enables you to consider innovative ways of increasing your market share, and helps to improve your competitive edge.
6.Strategy
Mapping out key strategies and details relating to implementation means your ideas and plans are well thought out and have a good chance of success. Strategies around pricing are also important when it comes to ensuring your goods and services are financially viable and profitable.
7.Viability
To run a successful business it’s important you understand the ‘magic numbers’ and information relating to your businesses. Comparing performance against targets helps you to assess viability and devise new strategies. Assessing the viability of your business and knowing you have a good opportunity in the marketplace, will help to give you the confidence and drive to make your business a success.
8.Accountability
Establishing targets and forecasting results throughout the business that can be monitored and measured as an indicator of progress or success gives you focus and something to aim for.
9.Action
Identification of key issues and actions required within specific timeframes is documented in an action plan at the end of your business plan, to help implement your strategies and drive your business forward.
10.Focus
Having a business plan in place as a working document keeps you on track and focused around the key drivers / goals in your business. Preparing or reviewing a business plan makes you think about your business ‘inside out’, adjust to changes in the marketplace, identify opportunities, devise strategies and map out action plans. As opportunities present you will know which ones to say ‘no’ to and which to accpet because they are strategically aligned with your business’ future direction. As your business grows or your situation changes, planning will become a continuous and regular activity that will assist you in focusing and driving your business forward. Don’t just get lucky, get strategic with a well structured and thought out business plan – the investment of your time in doing so will produce results!
