Is there still value in creating a business plan?
Bronwyn Crawford – Keynote Speaker believes having a business plan is still important, here are a few reasons:
A business plan is the road map for you to navigate your business from. It helps you stay on track while building your business but also when growing it. It keeps you focused on what you want to achieve and the route you plan to follow to get there.
A business plan is a communication tool, one where the entrepreneur can clearly organise his thoughts, share his vision, goals, and plans for the business with the rest of his team and external stakeholders, to achieve success. There are several pieces that need to come together for your business to be a successful one. The first one being that everyone is operating with the same information and moving in a clearly marked direction.
A business plan is as it says, it is a “plan”. It is not only the big picture but also the details: the milestones you will measure, accountable responsibilities, performance expectations and resources you will require. It helps you identify potential problems you may encounter along your journey. Your business plan prepares you for the future and helps reduce unexpected surprises.
A business plan aids the sales and marketing teams with clarity on the services and/or products they will be offering the market and who the target market is based on market research done; and the costs involved in doing so, including fixed and variable costs.
A business plan clearly states the amount of capital you need to make the company work and where you plan on obtaining the investment. It outlines your sales forecast, spending budget, cash flow, and profits.
Many people may argue that business plans are outdated and not worth doing, that business changes so quickly that before the plan is complete, it is invalid.
Bronwyn Crawford – Keynote Speaker does agree, business today can change rapidly, which is the very reason I believe having a road map to reflect on to ensure that while making operational decisions that the business remains strategically aligned.
A business plan is a tool, not something that is created and left on the shelf to gather dust.
A business plan should be referred to often and updated to remain relevant and add valuable insight.