10 Reasons Why You Need a Strong Business Plan

A strong business plan is the cornerstone of a new business as well as a significant tool for monitoring the progress and growth of your company. In this article we will share the importance of a business plan in a startup business.

10 key reasons why you should have a strong business plan

1. To attract investors

Before investors can decide whether or not to back your business financially, they will need to know as much as possible about how the business will operate and how their investment will be spent.

2. To see if your business ideas will work

By writing a business plan and outlining each aspect of your business, you can determine if your idea is actually viable.

3. To outline each area of the business

A well-written plan will provide you with an overview of all aspects of the business. You will be able to detail the who, what, where, when, and why of your day-to-day business operations, costs, and projected profitability.

4. To set up milestones

By forecasting where your business will be in six months, one year, or five years, you are not only letting potential investors know your plans, but also setting up realistic milestones for yourself and your employees.

5. To learn about the market

Researching, analyzing, and writing about the market not only provides you with an overview for the business plan, but gives you greater insight into the overall market.

6. To secure additional funding or loans

Your business plan can demonstrate that you have met goals and illustrate the company’s growth and need for additional funding.

More articles from AllBusiness.com:

7. To determine your financial needs

The process of writing a plan will force you to analyze your company's financial picture.

8. To attract top-level people

When you're , your plan will give talented people an overview of your business.

9. To monitor your business

A business plan should serve as an ongoing business tool that you can use to monitor your progress.

10. To devise contingency plans

While business plans often include some contingency plans, by virtue of having the document available, you can see how and where you can make such changes relatively quickly if, and when, necessary.