A business plan will provide you with a clear strategy and objectives. A good business plan will give you direction and keep you and your staff focused. In writing your business plans you may make mistakes which can be corrected on paper prior to implementing your plans, which can save you money.
The business plan demonstrates the seriousness of your intentions to banks, investors, colleagues and employees. It can be used as a measure for you to foresee/anticipate problems and take appropriate action timeously. All your ideas can be incorporated into the business plan to become a reality. The planning process affords you the opportunity of adopting a step-by-step approach in preparing for the future achievement and risks of your business venture. At the end of the process, you should be confident that the plan will work.
The good business plan involves research on the external and internal business environment like competitors, suppliers, consumers, etc., which can be translated into a detailed action plan showing the areas of competitive advantage and how you will combat problems. You can use the business plan to identify opportunities, analyse the life cycle of the business and each activity in the business and plan for capital requirements.