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Wednesday, September 6, 2017

Why do I need to write a Business Plan?

If you haven’t read if you need a business plan to succeed in business or not, I suggest you click on the link to gain additional insight into this article. In this write-up, we want to identify some viable reasons to prepare a business plan. It’s not always about trying to raise money to fund our startup business idea or existing business venture. There are other goals that a business plan can help achieve which are not financial in nature.

8 Reasons you should consider writing a business plan
I could list up to 15, but for want of time and space, I’ll just list and briefly explain 8 reasons to write a business plan.

#1 To Attract Investors or Partners
This is easily the most common reason people in Nigeria write business plans. Most investors won’t understand your idea if it can’t be captured in a document and may not be willing to just take you by your word. So to attract investors to fund your business, you obviously need a bankable business plan to help you achieve it. In addition, you may wish to engage technical or financial partners who may not come on board unless you show them a well written business plan.

#2 To keep Track of Your Business Progress
Another good reason for writing a business plan especially here in Nigeria is to keep track of your business progress. If you projected 15% growth in sales 3 years ago for your business in this financial year, how much of that growth have you achieved so far? You would be able to tell if you are on course with your business goals or not if you have a written business plan. 

#3 A Point of Reference for Your Planning
If you want to plan how to penetrate a market, exploit a new business opportunity or restructure your business for future challenges, a business plan can do the trick of guiding you. It would be very difficult for a new business led by a not so experienced business owner/manager to plan if they had no prior business plan because you would be short on parameters to guide your planning.

#4 To Guide Your Decision Making Process
What kind of staff should you hire for your business? What strategy should you employ to retain excellent staff? How would you sieve out business tactics that don’t offer much value to your business bottom line? Where should you focus maximal use of your resources? These and many other questions won’t be easy to answer if you have to make crucial business decisions without a business plan.

#5 To Drive Corporate Strategy
What corporate goals and in which direction should you be heading in the next 5 years? A well written business plan should detail how your corporate strategy should function and offer your business a sense of purpose

#6 Plan and Project into the Future
Business wisdom demands that we try to predict the outcome of our investments and activities to minimize risks and maximize returns. A well written business plan comes in handy for anyone who is serious about taking charge of his/her business’ future.

#7 To Secure Bank Loans
Except for businesses with proven track records or industries which have be time tested, most business ventures with little business relationships are required to present business plans to secure substantial loan amounts. The banks want to assess your business risks and the viability or otherwise before granting you the loan and without a business plan you would be preaching to the wrong choir when you approach a bank for a loan.

#8 To Demonstrate Corporate Readiness

How will you fare in the highly competitive business climate your own business will find itself in? There are businesses which have been around for decades that you your new business may have to compete against, you will also have to show employees in other companies that you mean business when you try to poach them by the kind of corporate structure and performance you have in place. But how will you know which kind of structure or performance to aim at if you lack a business plan?

I wish I could on but everything must come to an end, thanks for reading. 

If you want a bankable business plan written for your own business needs, give me a call: 0803 206 4106 or email me: paulonwueme@gmail.com