Reasons why you need a good business plan

‍ 1. It Creates an Action Plan

A good Business Plan is a road-map or action plan that steers your business in the right direction. It provides direction in times of doubt and a clear outline of how to achieve your business goals and manage those unexpected bumps in the road !
At Helix we like to start with a 5-year business plan. Then we break that down into annual plans. Define your projected budgets and cash flow for each financial year. Then build your action plan of what has to happen to achieve those milestones, and put deadline goals on them. This will provide you with a tangible framework of where you want your business to go and clear steps to achieve business success.

2. Helps you make sound decisions

A business plan helps bring focus and clarity to your ideas and simplifies the decision making process

‍3. To establish business goals and milestones

A Business Plan clearly lays out the long-term goals that are most important to the success of your business. Make sure your goals are achievable and they’re actionable. One question you might ask yourself to help set your goals is: where do you see this business in 5 years time? What does it look like? What does it feel like? How much profit are you making? What is the impact on your life? Is your business a success- personally and financially?

‍4. Helps to identify any weaknesses

Creating a Business Plan helps you identify potential pitfalls in your idea and allows you to brainstorm on strategies how to avoid these, and in turn uncover new business opportunities. It allows you to clearly share your business plan and ideas, and seek help from experts – like a business coach to give you invaluable advice to minimise any obstacles that could come along. If you’re already in business, it’s still worth writing a business plan, as it helps you take a step back and look at what’s working and what you can improve on.

‍5. To document your competitive market positioning (CMP)

Essential to the business growth are the business strategies and tactics that you use to reach and retain your customers. A realistic Business Plan will help outline what your advertising budget will be, and competitive prices to compete in the market. The strategies you use should be continually evolving as the marketplace changes - so revisiting your Business Plan at least once a year is critical.

‍6. For external funding 

A Business Plan is integral when applying for financial assistance, like business loans and Government Grants. These Lenders and Institutions will often ask to see a Business Plan when assessing your viability of their offering. Often it is the make or break between a bank giving you funding or saying sorry, no chance, or qualifying for the grant your business desperately needs.

‍7. To communicate with investors, stakeholders and suppliers

A Business plan allows you to communicate to potential investors critical questions including; demonstrating a need for your product or service, what are the financial projections, and how will I make a return on my investment? Most successful small business have a clear and comprehensive business plan that demonstrates to investors strategic forethought. A good business plan is just as important as the face to face meeting. Anyone who is going to invest in your business will carefully review your business plan, financial statements and capability before even offering to meet. Being able to demonstrate a good Return on their investment – and outlining exactly how you will get there is the first step in attracting investors.

8. Engage a small business coach – an investment in your small business

If you feel you out of your depth, then get some help! A small business coach has the expertise to support you create a successful business plan.
Don’t be scared of paying for it either – view it as an investment in your business. Research and planning are the two fundamental areas of starting a successful business,  and can require a decent investment of both time and money. Read What to look for in a business coach or advisor to help you find the right business coach!

Writing a good business plan does not guarantee a successful business, but can be the key difference between a business that fails or just survives, and one that thrives.  Ensure your business is the one that thrives!!