Advivo Business Accountants and Advisors share some key information about business planning in 2023
As a small to medium sized business owner, a business plan can sometimes seem more like a hurdle than a useful tool, especially when thinking about the work it takes to pull one together, or even knowing where to start. However, one of the reasons you will definitely need one is if you are thinking of applying for a bank loan or approaching a potential investor.
A business plan should be a living breathing document, constantly updated to cater for changing market conditions and your personal situation. Any business plan is not a collection of just words, it must contain research and detailed financial analysis and forecasts, preferably with alternate scenario analysis. Writing a business plan shouldn’t feel like hard work, instead think of it as an investment in your business, giving you the roadmap to achieve your goals and giving you some financial freedom.
A business plan should be a tool that you use to map out a strong and financially viable strategy to take your business to the next level. It will help you set your direction and determine a winning strategy and ensure key members of your team have a clear understanding of your objectives and expectations and are on the same page as you. In this blog, we share a few key reasons why you should start creating a business plan.
1. Secure funding
A well-written business plan can help convince a potential investor or lender to provide the necessary funding for a business. Cashflow is often an issue for growing businesses and a good source of funding can provide the leverage needed. The information in a well-developed business plan is exactly what the bank will ask for.
2. Set goals and objectives
A business plan can help in setting clear and measurable goals and objectives for a business, which can help in keeping the business on track. It will also cover the objectives for each individual, to ensure the overall company goals are met.
3. Identify potential problems
A business plan can help identify potential issues that a business may face in the future and develop strategies to mitigate those risks. Predictive analysis of the trajectory of the business gives the business owner the foresight to make changes BEFORE they become an issue.
4. Create a roadmap
A business plan can serve as a roadmap for a business, outlining the steps that need to be taken to reach the desired goals and objectives. Without a plan for where you’re going, how can you be certain you will get there? A business plan gives you a level of certainty and control; without one, you’re flying blind.
5. Improve communication
A business plan can help in improving communication between the management and the employees, as well as between the business and its stakeholders. It helps everyone stay on the same page when it comes to goals, objectives, monthly and yearly tasks, grow opportunities and more.
6. Make data-driven decisions
A business plan can help in making data-driven decisions by providing a clear picture of the business and its environment. The analysis that is done when producing the plan, can uncover hidden gems but also hidden issues. The systems that are set up often produce a dashboard for informed management decisions, again flying blind is just taking a gamble.
Have we convinced you? With Advivo’s FREE 12-Month Business Planning Template, you’ll be able to build a clear, strategic forecast of your future, mapping out what your business looks like NOW, WHERE you want to be in the future and HOW you’re going to get there.
Access your FREE 12-Month Business Planning Template now and start creating a plan that will set you off on the right path to achieving your business goals!