Sources seem to disagree about whether business plans are still relevant. Some industry professionals argue that a business plan is a key to success. However, other industry professionals argue that business plans are a waste of time and resources. If you are confused about a business plan, you are not alone. Our South Carolina business formation and planning attorneys believe that business planning is an essential element of successful business ventures. In the article below, we discuss some of the benefits of business plans and why they continue to be relevant.
Five Benefits of Developing a Business Plan
The benefits of a business plan are often realized through the “planning” more than writing down a plan. A business plan does not need to be a lengthy, complicated document to be beneficial. A lean business plan can also provide many of the same benefits, provided you invest the time it takes to develop the plan.
Five advantages of developing a business plan are:
1. Setting Priorities
It is impossible to do everything you need to do for success and growth at one time. This fact is true for start-ups and established businesses. A business plan allows you to set priorities so that you can allocate resources and time based on a strategic plan.
2. Manage Expectations
A business plan allows you to track your expectations and progress. By reviewing your business plan on a regular basis, you can see what you expected and what actually happened. This information allows you to adjust your course and manage change more efficiently.
3. Helps Secure Funding
While some professionals believe business, plans are outdated and unnecessary, many investors and lenders still want to see a strong, comprehensive business plan before investing in a company. Your business plan provides a roadmap for your business, but it also contains all the reasons why an investor would want to support your business with its capital.
4. Defining Your Organizational Structure
Developing a written business plan helps you define the roles and responsibilities of the owners, management staff, and employees. Defining these roles before you begin hiring employees can help you choose the right people for the job.
5. Market Analysis
A key section of a business plan is the marketing strategy. The business must be able to attract customers and clients to make money. Researching the industry, competitors, and the target market provide information on trends that can significantly impact your business decisions. The research you conduct now to prepare this section of the business plan can make it easier and less costly to handle marketing issues in the future.
Do You Need Help With a Business Plan?
A business plan allows you to be proactive instead of reactive. You develop focused strategies for every aspect of your business, so you are not constantly responding to emergencies and issues as they arise.
Our South Carolina business attorneys assist companies of all sizes in developing business plans. Contact our South Carolina business formation and planning lawyers at Willcox, Buyck & Williams, P.A. We can help you develop a plan for your start-up or a plan to help your business grow and expand.