The Importance of Planning!

The opportunity cost of not planning a is most often failure.  Entrepreneurs looking to obtain bank or investor funding and a solid path to success, need a business plan.  So much hinges on it, funding, credit from suppliers, the efficiency of your operating procedures, management of your finances, the promotion of your business, and most of all, achievement of your goals and objectives.

The process of researching and writing a business plan forces the entrepreneur to take an objective look at a proposed business venture.  During the planning process you are able to identify areas of weakness or strength and pinpoint needs that might have been over looked.  Business plans help the entrepreneur avoid going into a failing business venture.  If the venture is marginal, the business plan will show why.  The plan may also pinpoint how to correct the problems or it may just let you know not to do it.  Therefore it is important to begin assembling the elements of a business plan whenever you are contemplating a business idea. 

Business plans help entrepreneurs make good business decisions.   A good plan defines your business, helps you allocate resources properly, identifies your goals, and serves as your company's resume.  It is an operating tool that can help manage the business, improve efficiency, and work effectively toward success.  

Lenders and investors absolutely require a business plan because it provides the information needed to evaluate the business, therefore, a good business plan is a critical part of any loan application.  It provides organized information about your company finances, profit potential, and how you can repay the investment.

Your business plan is a working document. Don't write it and leave it.   A major reason for business failure is lack of planning. The best way to enhance your chance of success is to make a plan and follow through on that plan.

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