10 reasons why you need a Business Plan and 10 tips for success 6


business plan tree

A business plan is a written document that describes your business. It covers objectives, strategies, sales, marketing and financial forecasts.

A business plan helps you to:

  • clarify your business idea
  • spot potential problems
  • set out your goals
  • measure your progress

Approximately a third of all SME’s in the UK don’t have a Business Plan, that’s about 1.5m businesses, so if you don’t have one, here are some reasons why you should prepare one….

  1. Research by Exact Software shows that SME’s with Business Plans make 20% more profit
  2. Having a business plan doubles your chances of increasing profits, increasing revenue, attracting new clients
  3. A well-researched business plan which includes the right figures and realistic forecasts will reassure potential investors you are a sensible investment opportunity
  4. A Business Plan will help you set out and achieve your goals
  5. It will help you set goals for your managers and staff
  6. The Business Plan will help you plan your cash flow and forecast Capital Expenditure
  7. A Business Plan will help you secure Business Finance and Loans
  8. You can plan your succession strategy or prepare the business for sale
  9. A Business Plan tests the feasibility of your business idea
  10. It will help you plan for the recruitment of Staff

 

steve@bicknells.net

6 comments

  1. Pingback: 5 key questions you need to ask your FD « Steve J Bicknell

  2. Pingback: 5 key questions you need to ask your FD « Business Accountant

  3. Some great reasons for needing a business plan. Before you invest time and money in a business plan you may also want to run a quick feasibility on your business idea to check that it stacks up. We work with many Start-Ups and SMEs in the UK and internationally who get value out of that first “sense check” on an idea of plan for diversification. It can save a lot of time and money!

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