The benefits of having a business plan
Many business owners skip making a business plan, thinking they only need one if they want to apply for finance or that it’s too time-consuming to do. However, they are missing out on how much a well thought out business plan can aid your company’s growth, financial stability and overall success. Here are the benefits of having a business plan:
Clear business objectives
Use your business plan to outline and manage your key business objectives such as website analytics, sales targets, new products and profit margins. So, everyone is clear on where you are heading.
Stay in line with your strategy
It’s easy to get caught up in the day to day running of a business that you drift away from the company’s strategy. Utilise your business plan to provide a clear strategy, so you don’t waste your time with tasks that are not aligned with your chosen strategic approach.
Manage your business finances
You might think that keeping control of your company’s finances will be straightforward. However, when cash flow, profit margins, business loans, sales of physical products, cost of assets, financial forecasts, slow paying clients and shareholders come into the mix, it’s easy to start to feel out of your depth. A business plan is an excellent way to pull all of this together and see at a glance how all these areas affect each other, identifying areas of concern so you can take proactive action.
How do you know how well your business is doing if you don’t have any targets initially and you don’t measure performance against those aims? Define the key metrics you want to monitor and build them into your business plan. It’s not just profits and loss, you may also want to measure staff expenses, or the cost of marketing for example.
Your business plan should set out who is responsible for what, even if it is at the departmental level. This will allow you to maintain accountability and make it easier for individuals to focus on the areas they’re responsible for and not get sidetracked.
Allows you to stay flexible
A business plan helps you to be proactive and maintain flexibility in your approach. You can create a plan of action for the future, measure performance against key indicators and amend that plan if it’s not going the way you originally anticipated. You will also be able to see where you can easily make changes and the impact it would have on your business.
Remember your business plan is a living breathing document that is updated and amended as your business develops. It will help you maintain control and plan for the future so that you can achieve the success you know your business is capable of.
If you found this information useful you may also want to check out the following:
- How does the 2018 Autumn Budget affect businesses?
- Are you making the M.O.S.T. of your business?
- Why you need stakeholder and business loan protection!
MRA help individuals, businesses and families achieve the best quality of life they can with the resources they have. MRA specialise in corporate solutions, cash-flow analysis, taxation, debt management, savings and investments, lifestyle planning and much more.
Business Consultants based in East Sussex we service clients across the South East, Sussex and Kent, including smaller towns such as Ashford, Battle, Bexhill, Bodiam, Brighton & Hove, Cranbrook, Crowborough, Eastbourne, Hailsham, Hastings, Heathfield, Herstmonceux, Lewes, Mayfield, Newhaven, Rye, Seaford, Sevenoaks, Tenterden, Tonbridge and Tunbridge Wells.