A business plan is something that all businesses can benefit
from, regardless of the stage you’re at or the size of the business. Put
simply, a business plan is a document that describes what your business will do
and how you will do it. Unfortunately, many people don’t see the necessity of
writing one unless funding or loans are needed.

Here are 5 ways you can benefit from creating a business plan:
It gives your
business direction
Arguably the biggest benefit of writing a business plan is
that it gives your business a direction. Whilst you are researching the plan the
understanding of your business is broadened. It will help you identify your
goals, keeping you organised and on track. If you rush into a business without
a clear plan you can easily lose sight of where you want to go. Creating a plan
with financial forecasts, marketing plans etc, will help you keep focus of your
targets, both long and short term.
It helps you gain an
understanding of your market
The research that you do whilst writing your business plan
will help you to understand an industry that you may not yet be familiar with,
and for those of you who are, it’ll help you understand it more deeply before
you actually have a go at entering it. A plan not only helps you understand the
market however, but also identifies how your business would fit into it.
It provides a deep understanding
of what your business does
Business planning makes it easier for you to describe what
it is your business actually does, understand who your competitors are and
create a realistic plan that spans over the next few years. Knowing what you
offer and what your mission statement is will be crucial in all areas of business,
from interacting with a customer to building business relationships.
It identifies
problems
Due to the amount of research and information you put into a
business plan to address all aspects of starting up the business, any issues or
mistakes will be highlighted early on. Learning this beforehand is crucial, as
it gives you time to amend the plan and fix any issues before they happen.
Within the business plan you will focus on both the day to day operations of
the business and the financial side, such as budgeting and market planning. The
attention to detail a business plan requires will ensure a smoother road into
self-employment with fewer unforeseen problems.
It can secure funding
and loans
Whether you’re in the initial stages of setting up a
business or already running an established business, applying for loans or
funding makes having a business plan imperative. The potential investor or
institution will have many questions about your business and a business plan
will provide them with the answers they need, as well as showing you are
organised. A well written plan will increase your chances of securing funding
or loans because it shows you have considered the financial, planning, legal
and marketing aspects of your business.
Now that you know the importance of writing a plan, the next
step is actually doing it. For many this is the most daunting part of starting
up a business, but there is help available. If you are a woman in Merseyside
who needs support writing a business plan, The Women’s Organisation’s free 2
day business planning workshop ‘Planning for Success’ can help.
The course covers all the basics of business planning,
helping you to gain the skills to successfully build a business plan and cash
flow forecast, recognise strengths and weakness in relation to a business idea
and to plan your marketing strategy, including social media.
For more information, contact The Women’s Organisation on
0151 706 8111 / hello@thewo.org.uk or
visit www.thewomensorganisation.org.uk
to find out more about our other business start-up support services
By Beckie Kinsella
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