How and why every new company should outline a plan prior to beginning operations.
A Venture Capital firm or bank may consider providing capital or financing to new business when they provide a viable roadmap. Other than seeking investment from external sources, there are many benefits of a business plan. In fact, only a few companies are able to sustain their growth without a good plan.
A strategic plan creates a link of expected benefits and actual outcomes from the business. A well-developed business strategy enables the company to gain expected benefits. Strategic planning is key to assessing the business's potential determining its core competencies. The company then has the opportunity to align available resources with its potential. This can better handle external challenges. The strategic plan includes a marketing plan to promote products/services. The plan also includes increase sales volumes, attract target audience. Or provide a competitive edge to the business.
The Feasibility Plan
Enables project teams within a company to focus on the operational business goals. It's a tool for identifying new opportunities. The business can then diversify and increase profit margins. The plan provides valuable data to determine whether to introduce a new product or service or to venture into new markets. The exercise narrows down the business alternatives. The feasibility plan identifies a valid reasons for undertaking a new project. Evaluating many parameters and aiding the decision-making on the project, it enhances the success rate of the business.
Venture capital firms and banks often require a written viable road map before considering providing capital and financing a new business. Other than seeking investment from external sources, there are many benefits of a business plan. In fact, only a few companies are able to sustain their growth without a good plan.
An Operational Strategic Plan
With a sound plan in place, businesses have a clear road map to help them find opportunities for growth. Once they know how they want to expand their business, chances of avoiding and reducing the risks involved are greater. This plan helps a business to rise above its competitors. By recognizing different avenues of growth in time, the business can secure their share in the evolving markets. Part of writing a business growth plan is studying the target market. Evaluating how your company is performing puts you in a better position to decide your future direction.
With a Contingency Plan...
In place, a business can avoid unnecessary risks. When the plan lists down all the actions that need to be taken, the reaction time to adverse events becomes less. Everyone can focus on what to do without wasting precious time. It also allows a business to cut the damage that could happen as a result of disaster and loss of production. Contingency plans ensure that business operations are not disrupted and continue running smoothly. The clarity in roles and responsibilities also reduces panic within the company.
Available on Amazon. John DeGaetano is an award winning business advisor and author of: "How to Write a Business Plan" and "Business Survival Guide: The Ultimate Strategic Small Business Guide for Start-ups and Growth Planning."
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