Importance of the business plan

The business plan is a vital part of the process in which any entrepreneur begins his or her business life. Many would-be entrepreneurs and aspiring entrepreneurs mistakenly believe that a business plan is not necessary for the success of their business. They will advise you not to waste your time with one, based on empty arguments.

It must be clear to you that the correct planning of your strategies and mechanisms to manage your business, are essential parts that you should not skip. And I will explain why.

Main Objectives

To start off correctly, I will explain that the business plan fulfills two objectives in general:

• The first and most significant is that it is used as an aid to manage your business in a more organized way. It serves as a guide or manual to be used to delimit with greater specificity and clarity every aspect of the management of your business. Of course, nothing in this plan is set in stone, there is room for adaptation and innovation.
• Think of it like your vacation itinerary, in which you put where you are going to go, at what times and which roads you are going to use. But depending on what happens or what new attractions you want to enjoy, you can change it and adapt it to these new needs.
• This makes it an ideal tool for building your future plans, designing your sales strategies and your approach to membership, which greatly increases your chances of success.
• The second objective is the need for a well-defined business plan for any action you want to take with your venture, whether it is expanding your business, finding new investors or borrowing from financial institutions. You need to demonstrate and convey the confidence that your business has a plan for success or you will not be able to get anyone's support.
• Banks will want to minimize the risk of failure as much as possible, most private investors will not even listen to you without a sensible prediction of the possible return on their profits. The business plan is the foundation on which you build your entire business and without it your chances of success are slim.
• The third objective of a business plan is when you want to expand your venture and attract new partners or colleagues to work with you. If you would like a family member or close friend to join your business, you may not need a formal business plan and just an explanation of your venture will suffice.
• But if you want to attract a partner in a more professional way, a good plan is what will convince anyone that you and your business are worthwhile.
• It's the best way to give them confidence in the success of your venture.

Things to consider

There are different ways to make your business plan, and one aspect to keep in mind is the type of business you have and your expansion and investment goals.

If you are going to start the process for a loan or for a potential private investor, a detailed plan is necessary, without skimping on details. This kind of plan is extensive and thorough, with a specific organization that investors and institutions take into account when committing to your business. For this type of task, you would use a detailed, multi-page business plan. These types of plans can be found on the Internet or you can hire a professional service to help you prepare them.

If you are not planning on requiring financial assistance at this time, a simple one-page business plan may contain everything you need to guide you. You could write a simple business plan on a small sheet of paper, and expand it progressively. For a simple business, such as a fitness trainer or business coach, you don't need such a detailed plan initially. If you are going to meet with clients a few times a week or do online consultations, you won't need a 100-page business plan.

The business plan is the connecting thread between the ideation phases and the actual, practical part of your venture. That's why you should create an organic business plan that grows with you and adapts to the demands and needs of your growing business.

Importance of the business plan by area of work

A company is made up of a group of departments or areas, depending of course