Since 1988, my company, Jian Software, has been refining and marketing the top software package for developing business plans – BizPlanBuilder for Mac and Windows. Over the years I have spoken with thousands of entrepreneurs and small business owners who were over the moon excited about the future prospects of their company, but less than enthusiastic about having to “write a business plan”.
Don’t get me wrong. I understand this sentiment completely. For most entrepreneurs it is running a business, not planning a business, which gets them motivated to get out of bed.
However, rather than looking at the myriad of reasons why writing a business plan is less fun than a day at the beach, I want to share with you twelve reasons why you should always have your business plan up to date and in the top drawer of your desk.
To summarize – you never know when you might need it. Better to write it and keep it up to date every month or quarter, then have to scramble to develop a plan when you are under a tight deadline. Believe me, trying to get your plan done on a short timeline is no fun at all.
Here are the top 12 reasons why a finished plan is a very useful tool to have on hand:
1. Associates: to establish agreement, direction and purpose…
2. Bankers & other financial resources: to provide loans for equipment and materials…
3. Business brokers: to use as a brochure when selling your business…
4. Employees: to align their efforts with yours and promote your vision of your company’s potential…
5. Investors (angels, institutions, or VC): to convince them to supply cash for growth. The better job you do on your plan and the more prepared you are to answer their tough questions, the more control you’ll keep…
6. Friends & Family: to convince them that you really do know what you are doing and have matured beyond their past memories of you… This is a bona fide business proposition and not a request for a hand-out…
7. Small Business Administration: A business plan is a must with an SBA loan application…
8. Senior executives: to convince them to approve and allocate company resources. Get buy-in from your management team…
9. Stock or partnership offerings: to use as the basis for preparing a prospectus or offering circular to sell shares or partnership units to raise money…
10. Suppliers: to establish credit for inventory…
11. Talented people: Any smart prospective key employee wouldn’t touch a start-up without reading a good business plan first. Persuade them to join you…
12. Yourself: to collect your thoughts, analyze your business, set goals and make decisions. Use it as your “brochure” to promote your business concept so you don’t have to explain it over and over.
OK, so now that you see there are a myriad of uses for your business plan what are you still waiting for? It is time to get started on your plan for the future.
Be sure to check out Jian’s business plan software for Mac and Windows if you are looking for a faster and more effective way to write your business plan. We are also launching an online business plan solution in the very near future – email us at [email protected] for more information.
I think this was a great piece–and much needed motivation–to get me back on the track of getting my business plan completed. Thanks