what is the importance of a business plan?

Planning is one of the most important parts of running a business, no matter whether it is a large multinational corporation trying to plan an expansion or a small business launching an exciting new product. Sell AAPL Today? You might manage to make it to your destination eventually, but don't be surprised if you get really lost on the way!As a small business owner it is very tempting to neglect planning altogether, especially if you are the only person in the company. After all, planning can be a time-consuming process and for small business owners time spent planning is likely to be time when they are not earning any money. But the benefits of good planning will far outweigh any temporary loss of earnings. The great thing about a business plan is that it can provide a reference point for you to return to at any point during the project. Just looking at a plan and seeing how far you have come is a great motivational tool. It can help you determine whether you have drifted too far away from your original vision and allow you to get back on track once again.

Writing a business plan is a big task, but it is manageable. Business planning is an ongoing process for all businesses — or at least it should be. Effective planning keeps established companies on track. It serves as a guide for companies that plan to launch a new product or service or introduce a new marketing program to seize new business opportunities. A plan is also essential for companies in trouble who want to chart an effective turnaround. Even companies that are looking to go out of business need a plan if they intend to put themselves up for sale or merge with another business.



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Many entrepreneurs are intimidated by the idea of writing a business plan. The idea of writing such a detailed document may remind you of the dreaded days of school, or may just feel that you can better utilize your time elsewhere. But, the business plan is a strong business tool, especially for the small business owner. It provides you with every detail about your business and allows you to review the hard, clear facts that are needed to make strong and successful business decisions, even if it means starting the business over.

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