There are several benefits of creating a business plan for a small business, one of which being a concrete plan for your business and it’s future.
For businesses seeking external funding or loans, a business plan is a critical piece of evidence to prove your commitment to your investors. A good business plan will act as an assurance that your business is headed in the right direction with a clear goal or outcome in mind.
Another benefit of building a business plan is it helps your management team have a thorough understanding of your organisations’ finances. This is an opportunity to set clear financial goals for the business, as well as outline any financial risks or threats to your organisation. Even if this is sensitive information, it’s valuable to lay all the information on the table to help you set clear goals for the future.