Why do we a business plan - Why is a Strategic Plan Important? - dummies

What Is the Importance of Strategic Planning? A strategic plan is a written document that points the way forward for your business. The strategic planning process also helps you uncover ways to improve performance. It can, for instance, spark insights about how to restructure your organization so that it can reach its full potential.

Developing new products, expanding operations, reaching into new market segments, solving organizational problems — as you grow your business, a well-designed strategic plan will dictate how you respond to opportunities and challenges of every color, shape and size.

Strategic Planning is Itself a Business Growth Strategy Of course, before you can respond, you have to be able to identify those opportunities. Every business owner needs to be able to make these kinds of distinctions, because the business landscape is constantly changing, and faster than ever before. New government regulations, changing workforce demographics, advancing technology and economic uncertainty affect every business differently.

A strategic plan allows you to put these business challenges into perspective.

Emergency Planning

It gives you the foresight you need to tackle them in a coordinated way. So what are the sorts of business challenges that strategic planning will help you to rise above?

Ideally, you'll have partners, so you can launch faster, smarter, and with less need to pay employees or suppliers. Even if you don't have partners, you'll have family, friends, and advisers involved. A business plan helps get everyone involved in your start-up heading in the same direction.

Business Plan: Your Financial Plan

To develop a game plan: At a start-up, execution is everything. That means you have to set priorities, establish goals, and measure performance.

You also need to identify the key plans to answer, like "What features do customers really want? Action plans help you identify the necessary steps you need to put in place to pursue your vision. It turns the dreamer into a methodical doer versus an aimless action-taker. Twitter is a perfect example.

The Twitter folks business working on a different product when Twitter began why get traction and take off.

So they dropped the other project and pursued Twitter. Helps you keep track of who is responsible why what by when. Action plans are beneficial because they can business keep plan of who will be taking action on what by when. Think of it as an accountability system. Action plans are helpful in identifying timelines, deadlines, and specific details on the actual steps you will be taking. Update your business plan regularly to take into account the economic climate and what's going on in the industry to ensure you always have a clear idea which direction you will be taking your business in.

Why do I need a business plan?

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Setting out an accurate plan will help you determine whether your business idea is feasible. By making cashflow, sales and other financial forecasts and looking at what sort of target market you will have, you can work out whether your idea will work as a business and how easily you will be able to monetise it.

Because it sets out exactly what your strategies are and how you are planning to run your business, a well-written business plan containing relevant figures will help you convince investors your business is a reliable plan. A well-researched business plan which includes the right figures and realistic forecasts will also reassure potential investors you are a sensible investment opportunity.

Even if you're not planning to raise money, a business plan will allow you to map the future of your business. By putting your thoughts down on paper, it will allow you to come up with a comprehensive strategy on how you will deal with various scenarios.

Your plan plan gives you a place to list why goals and objectives for your business, helping you to set out clearly how you plan to meet these goals and on what sort of timescale, and forcing you to commit why that course of action.