Reasons to have a business plan
Most business plans are produced for a specific reason and the most common by far is to raise finance. However, a well thought out and well written business plan is essential for every company, not just those seeking an investor or a lender. Indeed, the discipline of writing something down is the first step to making it happen. Without one, a business will under perform and risk failure. Discover the reasons why companies fail.The reasons why companies need a written business plan include:
- To raise finance (i.e. a business loan from a bank or venture capital from a business angel)
- To determine the amount of finance required
- To act as a blueprint for running the business
- To define milestones and what is required to achieve them on time and in full
- To understand the sensitivity of forecast financial performance to changes in assumptions
- To monitor business performance versus forecast financial performance
- To manage cash flow
- To enable a business to raise its game and take its performance to a higher level
- To think about the business in a structured rigorous manner
- To ‘force’ a better understanding of the market, the competition and the core target market customer
- To determine strengths weaknesses, opportunities and threats
- To ensure the marketing strategy and marketing plan are not neglected
- To review and objectively evaluate a new business venture
- To value a business
- To sell a business
To discuss your business critical issue
Please call Paul New on 020 8390 9972 or 07790 501225 or send a message.