Business planning is so important if you want to succeed in your business. If you do not have a business plan, you cannot know where you are going. And if you cannot know where you are going, you will never know when you will get there. You shouldn’t, therefore, overlook the significance of developing a plan for your business no matter how small it is.
The major importance of business planning is therefore to guide you by showing you what your business intends to achieve and how to achieve it. Although very many people start businesses every day, few of them remain committed to their businesses for some time and benefit from them. One of the reasons why most of them pull out in the first years of running their businesses is the lack of a plan to guide them. Not having a plan is a sure way of failure in any business.
Why Is Business Planning a Wise Approach to Your Small Business?
#1- Having a Clear Sense of Direction.
It gives a sense of what you have to expect before you enter on the long journey of doing business. It enables you to start your business after having prepared yourself as much as you can. This makes it possible to know clearly what to do when to do it and how to do it.
#2 – It Guides You to Run Your Business and to Be More Focused
The business planning process enables you to think about setting business objectives and goals. The goals you set guide you to achieve something, encourage you to work and assist you to watch and check your performance and the entire business as well. You can never hit a target you can’t see. When you have goals, you can focus your efforts and have a sense of direction.
#3 – Confidence
Having a business plan is a way of selling yourself and your business to possible partners. Business planning enables you to confidently speak out to your partners from a more informed point of view. People will always believe in you more than the one who doesn’t have a plan.
#4 – Being Organized
It shows that you are organized and you know your business well. I have always said that the future belongs to those who are organized. If you are disorganized in whatever you do, it’s very difficult to succeed in your business. Having a business plan for your business makes you look organized and someone who knows what he/she is doing. And having good organizational skills is a key to success in your business.
#5 – Source of Information
It provides information about the business and the market you are to operate in. Business planning enables you to focus deeply on the nature of your business and the products or services you intend to offer. It also enables you to focus on your target market, how to position yourself in the market, the competition, the anticipated demand, marketing methods, how to attract new customers and how to support your customers. This is very useful information, which provides you with a clear and broader picture of your business.
#6 – Possibility of Getting Support
It increases your chances of obtaining financial assistance. A well-prepared business plan opens up the doors for you to access financial support. It becomes easier for you to access, say, a loan from the bank to set up your business or to grow your business.
If you have a business without a plan, it’s high time you made one for you to succeed in your business. The business planning process makes it possible for you to see the upside and downside, to set clear goals, expectations and ways to accomplish them, to make good business decisions and to sell your business to your partners. Think about it