One important document for any type of business is a business plan. It is valuable at any stage of the business. Having a good business plan is required when you want to raise fund for your company. In addition, it is used to craft a better company strategy through reflection and projection into the future and to bring all employees together under that common mission.
In the life of a business, an opportunity may arise at certain times to move forward. And with that, you will require a capital investment beyond what your company can afford with your own resources.
Especially when you’re at the startup phase, there are times that you need additional funds particularly when you aim to expand to additional locations, to create a significant product extension, or to franchise. With that being said, you need to convince outside sources such as lenders and investors. Hence, you need a strong and reliable business plan to support this argument.
Aside from raising funds, a good business plan also helps in creating a stronger strategy in the first place. The process of creating a plan creates a specific time for reflection on the past of the business. You can also reflect on the industry and market (if you are a new company) as well as projection into the future. Reflection allows you to evaluating into which of your previous tactics and which have not.
Having a good business plan also gives the business a clear target on where your want to go. By having a business plan, your partners and employees better understand your company culture, purpose and goals.
Now, you have already know the reasons why you should right your own business plan, no matter what size or type of business you run. The next question is, when is the ideal time to right one?
To find out, read this blog post: https://www.smartcompany.com.au/startupsmart/advice/business-planning/when-is-the-ideal-time-for-entrepreneurs-to-write-a-business-plan/
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