Deerfield Beach, Florida: A well-thought-out business plan is widely believed to contribute to success, and it is one of the first tasks any entrepreneur must tackle. Still not sure? Global business planning statistics highlight the many advantages of this practice. A business with a plan is more likely to have the following benefits than one without one:
More than twice as likely to receive funding and experience growth,
Increase sales and profit margins.
A separate study found that the lack of a business plan was the primary reason for the failure of one-third of startup businesses.
But business plans also get a lot of criticism. It has been argued that they are not worth an entrepreneur's time. Some argue that successful entrepreneurs are more likely to write business plans, but that doesn't mean their plans made them successful. This makes perfect sense; if you take the time to create a detailed business plan, you are more likely to be the type of person who achieves financial success with their endeavors.
So, what does this seemingly contradictory data suggest? If you want to know how much a business plan is worth and what you can learn from it, look no further than the most successful entrepreneurial industry: technology start-ups. Any successful tech entrepreneur will be the first to tell you that your carefully laid plans will quickly become irrelevant.
"No business plan is ever final, and your company will almost certainly have changed by the time anyone reads your business plan," says Alfred Adessi, president of BusinessPlans.com.
In the startup world, one of the most common pieces of advice is to repeatedly test your assumptions. Create a product based on your ideas, see how it does on the market, and adjust your approach as needed. This is the reason why a business plan needs to be updated as the approach changes.
Last but not least, finish all of your research and keep it up-to-date because banks and investors will still require a business plan for loans and raising capital.
Professionals agree on one thing: you need a business plan, you need to use it to test your ideas, and you need to keep it updated. You'll notice this same set of advice from various industry experts.
Updating your business plan has many advantages:
You can confidently present a current, accurate document to lenders, potential employees, business partners, and investors at any time.
The more actual information (such as sales and costs) that you can incorporate into your plan, the more precise it will be. Keeping your business plan up-to-date as your company grows is a great way to guarantee success.
You can use it to stay alert to potential threats and gains. Keeping your business plan up-to-date helps you think more clearly and methodically. It's a sensible method for keeping your business overview up-to-date and factually sound.
Other studies have shown that engaging in the process of business planning on a regular basis is beneficial and can boost one's confidence levels. Entrepreneurs who take the time to draft a business plan are 2.5 times more likely to actually launch their venture.
Entrepreneurs need to be creative thinkers. It would be foolish to not maximize the long-term benefits of your initial effort.
What procedures should be followed to ensure that a business plan is always current?
It's best to be direct and concise when creating the original plan and when making any subsequent adjustments to it. If you want to keep your plan up-to-date, stay focused on the most important details, and make it more readable for others, keep it brief. BusinessPlans.com does a wealth of research for creating a business plan and pays attention to the basics like cash flow and SWOT analysis.
Is there a recommended frequency with which to evaluate your business plan?
In accordance with standard procedures, annual or semiannual meetings should be held at the very least. New business owners, however, should expect to revisit their plans more frequently, especially after initial sales data becomes available.
In the end, it's clear that business plans are at their most effective when they reflect the realities of the company's operations. Entrepreneurs in any industry can benefit from incorporating startup best practices like idea testing and investor readiness into their own plans. Today's markets are dynamic and frequently experience disruptions. There is a great deal of unpredictability here, but also a great deal of potential. When opportunities present themselves, you want to be ready to make the most of them, and an active business plan will do just that.
Partner with BusinessPlans.com today to create a well-thought-out business plan for your startup and keep making adjustments as you feel it is necessary. Call 24x7 at +1 954-573-3110 or email [email protected]
to schedule a meeting with an expert business plan writer.
To get started with your business plan, Businessplans.com is a great resource. There are over 15,000 companies, both startups and long-running enterprises, that have benefited from their guidance in crafting a solid business plan. They have maintained an A+ rating with the BBB for the past 15 years. A complete business plan, including marketing and advertising strategies, can be yours after answering just 35 fill-in-the-blank questions.
Alfredo Adessi (President)
220 South Military Trail
Deerfield Beach, Florida 33442
Email: [email protected]
Call: +1 954-573-3110