Benefits of Having a Business Plan

Entrepreneurs often ask, "Why do I need a business plan?". Well,

let's put it this way. Do you want a successful business? Because,
writing a well-thought-out and organized business plan dramatically
increases your odds of succeeding as an entrepreneur. Running or
starting a business without a business plan is like walking through the
dark without a flashlight. You can probably go a long way using just
your senses and relying on basic instincts. But operating in such a
manner leaves you wide open to the risk that something will get in
your way (like a competitor) and you probably won't see it until it is
too late. And just imagine all of the opportunities that are just waiting
to be grasped - but without a flashlight, ah sorry - business plan, how
will you see and

take advantage of them?

The benefits of having a business plan include:

 Helping you to clarify your vision and deciding whether or not

to forge ahead with the idea.

 Determining if your product and/or service has a sufficient

market to support it and whether or not it will be profitable.

 Providing an estimate of your start-up costs and how much

you'll need to invest or finance.

 Convincing investors and lenders to fund your business.

 Defining your target market (who your customers are or will be)
and how to best reach them through strategic marketing actions
or expanding market coverage or reach.

 Establishing or reevaluating your competitive position within

the marketplace, by conducting a thorough analysis of the
competition (finding out where your competitor's weaknesses
are and how you can take advantage of them).

 Defining corporate objectives and programs to achieve those

objectives.
  Helping your business make money from the start by developing
effective operational strategies.

 Understanding the risks involved and anticipating potential

problems so you that can solve them before they become
disasters.

 Setting a value on a business for sale or for legal purposes

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