So what are the 3 main purposes of a business plan?
1. Plan for Unforeseen Events
2. Establish a Roadmap
3. Provide a Communication Tool
What are the 3 Main Purposes of a Business Plan?
1. Plan for Unforeseen Events
Have you ever had to make critical business decisions on the spot? If you haven’t, you will at some point. It may come in the form of a problem that arises out of the blue, or it may be a goal that you haven’t anticipated and don’t know how to achieve.
The purpose of a business plan is to plan for unforeseen events so that when they arise you will be able to make well-informed decisions quickly and on time. A well-written plan will give you the ability to think clearly in times of crisis and provide you with an action plan for success.
2. Establish a Roadmap
A business plan is a roadmap for your business. It is a document that outlines the details of your business and provides you with a guide for success. A good business plan will help you avoid pitfalls, recognize opportunities and achieve the goals you have set out to achieve.
So, a plan can help you to:
1. Know where you are going.
2. Figure out what you have to do to get there.
3. Keep track of your progress.
4. Avoid the potholes and roadblocks along the way.
5. Celebrate your achievements when you get there!
A business plan will also help you to:
1. Make informed decisions about your business.
2. Make informed decisions about marketing and sales.
3. Make informed decisions about financing and funding your business.
4. Make informed decisions about personnel and hiring decisions.
5. Make informed decisions about when and how much to reinvest in your business
Thus, a business plan will help you to avoid the business mistakes that will cost you thousands of dollars, and maybe even put you out of business.
3. Provide a Communication Tool
A business plan is a communication tool. It will help you to communicate with people outside of your company, and both inside your company.
A business plan will help you to:
1. Communicate with your Board of Directors/ Investors/ Shareholders.
2. Communicate with your employees, staff members, and consultants.
3. Communicate with lenders, banks, and investors to help secure financing for your business.
4. Communicate with vendors, suppliers, and creditors to keep them informed about the status of your business and how it is doing financially.
Thus, a business plan is a communication tool that will help you to build trust, loyalty, and credibility among those who are involved in your company’s success.
In summary, a business plan is a road map for success. It is a document that will help you to avoid pitfalls, recognize opportunities and achieve the goals you have set out to achieve.
It is a tool that will help you to make informed decisions about your business. It is a communication tool that will help you to build trust, loyalty, and credibility among those who are involved in your company’s success
In short, a business plan is a blueprint for success!