Do I really need a business plan?
Do you know where you want your business to be in a years time, two years time, five years time?
Having a plan to work to can be the key to making it happen.
A simple business plan with projections can also identify when variances from expected results occur and allow timely corrections or investigations to be made.
Projections, which include a profit and loss account, cash flow statement and balance sheet, can also be a key tool in identifying any cash flow issues which are likely to occur and allow planning for this or requests for funding to be investigated well in advance.
I would strongly recommend putting together at least an annual plan and then use this by referring to it on a regular basis to compare actual results against those expected at the beginning of the year.
Being able to take time out of the day to day running of the business to think about the business’ strategy is essential, and putting ideas into a tangible plan can identify how these can be achieved. For example identify when additional staff, funding requirements or plant and machinery are needed.
Having a structured plan can be a key tool in helping your business to achieve its goals.