The importance of business planning
Prospective business owners often question if they ‘really’ need to write a business plan – my answer is yes, you do.
A good business plan is the foundation of any small business, whether you are starting up or looking to grow.
Market research is a foundation tool to planning.
While writing and researching, you’ll learn more about your industry, potential customers and developing a deeper understanding of market trends, not to mention being able to keep an eye on what your competition is doing.
It also helps you identify potential challenges ahead and work out strategies to avoid or overcome them.
I recommend visiting SBDC’s Perth office where you can get access to free research resources including IBISWorld.
Planning will help you clarify the goals you want to achieve and strategies to achieve them.
Planning helps you:
- focus on the steps needed to make your business idea succeed;
- identify your potential customers and competitors; and
- prompts you to look at your strengths, weaknesses, opportunities and threats you may face in the industry you are considering.
Planning can also help you consider potential problems and proactively put a plan in place to better manage them if they do arise.
If you’re applying for funding, looking for investors, or want to work with other businesses, having a business plan is a must.
It shows you’re serious about making your business succeed and will also help lenders understand your business.
Be sure to review your business plan regularly – use it as a reference tool to keep you focused on your goal and track your progress.
Consider attending our ‘How to Write a Business Plan’ workshop that guides you through the steps of developing a business plan, while demonstrating why proper planning is an essential tool for any small business operator.
Don’t miss my next article where I’ll discuss business finance.
Visit smallbusiness.wa.gov.au or contact one of SBDC’s business advisers on 13 12 49 for more information on business planning.