The Importance Of A Well Written Business Plan
Have you decided to apply for an SBA MicroLoan but are unsure why they asked for a business plan to file the documents? Do you find the whole process a tedious one and feel lost without any guidance?
Don’t worry! This article intends to throw light on the importance of a well-drafted business plan for your company and how to write one?
What is a business plan?
It is crucial for any organizational growth. It helps to pave the way to gain loans for your company very smoothly. Any new business should invest a fair amount of its time drafting a business plan, which clearly describes your ideas and vision for the company.
In case you haven’t thought of writing one for your new business, it is high time you draft one ASAP. A good business plan helps you stick to the business objective and aim for the growth you intend to achieve. It will also help you get microloans irrespective of your poor credit history and lack of funds.
Why is it essential to have a business plan?
A good business plan in place ensures the strategic growth of the organization. It also proves to be a guiding star for your company’s success and helps you not get deviated at any stage.
Listed below are the benefits of a good business plan.
- Helps in gaining loans:
As stated earlier, a well-drafted business plan helps in getting quick loans. It’s a universal truth that running a company is not easy, and you should be prepared to face the ups and downs on the way. A smart businessperson never invests all the funds in the business.
MicroLoans always help you create the basic foundation for your business. It would help if you never ruled out that your business might require the support of these loans.
So, in times such as these, a good business plan helps you get the much-required loan for your business.
- Helps in taking a strong stand:
As an owner of the firm, you have to take a strong stand for the company’s profit at times. A good business plan helps stay focused on the plan and strategies adopted for the business growth. A business plan lets you focus on the company’s financial aspect and lets you pay attention to HR management, IT support, Customer service, and employee growth.
- Helps to analyze the strong and weak points:
It helps you reflect on your ideas as the company grows. You can quickly point out which aspects you should focus on and where you should invest more of your resources. This could be the best way to correct mistakes you might have made and reflect upon them. A full-proof business plan will guide you and help you avoid the pitfalls you are bound to encounter.
- Helps you draw the attention of other partners:
A business can’t be run alone, and when you have a business tied up with partners, a good business plan helps to clear any misunderstandings. At times of difference of opinion, a business plan comes in handy in presenting your company’s ideas and vision. It will help clear the misunderstandings and build other partners’ confidence in your vision for the company. A good business plan would help you secure the stakeholders’ valuable trust, who could turn into future investors for your business.
How should you draft a good business plan?
Now that you know the importance of a good business plan, let’s look at the key points to be kept in mind while drafting a business plan for your company.
Suppose you are confused about how to draft your business plan; it is ideal to start using a universal template that is readily available online. Or you can take the help of SBA50k. We are experts in writing a business plan and assisting small businesses in availing the SBA MicroLoan.
Listed below are the key characteristics of a good business plan:
- Stick to a template:
It should be well-drafted. You can choose to pick the conventional ones available online or decide to write one on your own. Whatever be your choice, it is always advised to stick to a template. Don’t try to mix two or three templates while writing a business plan, as it would create confusion and won’t help in your business growth.
- Include all the essential points:
Your business plan should speak about the products that your company deals with, who your customers are, how you intend to start the business, what you aim to achieve by starting the business, operational aspects of the company, stakeholders or partners involved, the structure of the organization, and other important details.
- Funds operation:
Funds play a vital role in business growth and are an essential aspect of any business. A good business plan should clearly state what you intend to do with the funds and how you will use them to boost the business. If you have already availed a loan, you should explain how and where the funds are invested and how you intend to repay them while helping the company get a good hold in the market. This also comes to your aid if you plan to re-apply for a business loan in the future.
- Financial projections:
Planning your funds should be in line with your loans’ repayment capacity and keeping the transactional documents in place. Each penny spent must be recorded systematically. And as an owner, you are accountable for the funds spent. Keep track of the financial records and credit reports in place. Don’t forget to maintain a record of the taxes paid and of both accounts payable and received bank statements.
It would help if you went through the business plan at frequent intervals to keep adding any improvements required for your company and avoid the pitfalls. Make sure you also have a word with your lender, who would help you stay on track.
Take away words:
A well-written business plan acts as the magical key to the success of your company. Never neglect to draft one for your new start-up. If you don’t know where to start, you can always take the help of SBA50k, who are pioneers in helping new businesses and creating a foothold in the competitive market.
Don’t wait. Write a good business plan for your new business today!