Congratulations on wanting to start your own business! After all, entrepreneurs are what America is made of! Creative minds flowing with fabulous ideas, excitement, passion and organization are what truly makes a business successful. However, all that excitement and knowledge without a plan can be a recipe for disaster. You have heard of it…A business plan. What is it and why is it so important?
What is a business plan?
According to the Small Business Administration, a business plan is basically a resume for your company. It describes what your mission and vision is for the business that you desire to develop. It is an excellent way to keep you on track and to set goals of how to make your business successful.
What is the value of a business plan?
There are many valid reasons as to why you need an organized plan for your business. As BrightHub states, “The value of a business plan is not only to lure funding from outside investors, but to also act as a compass for internal decision makers.” When you are dealing with banks, lenders and investors, having a plan is a great selling tool. Not only do you appear more knowledgeable and organized, you show them your goal and vision of how to make this venture successful.
When should I make a business plan?
Making your plan should be one of the first things you do when you decide you want to open your own business. This will guide you every step of the way, help you stay on track and can be “tweaked” as often as needed. A business plan should be revisited each year to see what possibly may need to be changed. After you decide on your plan, it will give you more guidance as to how you would like the structure of your company to be. Is becoming an LLC what is best for you or perhaps an S Corporation? Maxfilings can help you in every step of the way in this decision.
What should be included in my business plan?
There are a variety of items that should be included in your business plan. Here is a list according to SBA.Gov and you can view their website for very specific details on each step.
- Executive Summary
- Market Description
- Marketing Analysis
- Organization & Management
- Funding Requirements
- Financial Projections
- Appendix (optional)
What can happen if I don’t have a plan?
Your business may be one of the few to not suffer without a plan, however many do. Some of the potential possibilities of what can occur due to improper planning are as follows:
- Bankruptcy due to lack of financial planning
- Not really understanding the needs of your customers due to no market analysis.
- Quality of service may fall short and you lose customers due to not understanding their needs.
- You can lose complete focus of what your business is founded upon and the goals you want to accomplish.
You can see there are many valid reasons as to why a business plan is necessary. Please browse our knowledge center and blog for a variety of topics regarding all aspects of business. At Maxfilings we can help you with each step of the way regarding your business.