I Know My Business and Don’t Need a Loan – So Why Do I Need a Business Plan?

You have a smooth running business and aren’t looking for a loan – so business plans are only for banks surely? Not really they are for you the business first and foremost. Why?

Well first of all you need to spend some time checking through your business and talking to your key employees just to check that your business is running as smoothly and efficiently as possible. Business planning is a good discipline to ensure that you business is as you think it is. Start with your business vision, financial and marketing strategies. You do have them don’t you?

Your business vision is where you want your business to be, how you want it perceived and is what gets you out of bed each day to face the daily grind.

Your financial strategy is how you will spend and utilise your capital, how you will manage your cash flow and what level of profits you are expecting.

Your marketing strategy is what you are selling, to whom, when at what cost and in what format.

You are starting to see how important your business plan is to your business.

Now look at your business goals – are you still heading for them or have they changed a bit and you need to rethink where your company is going and what it is doing?

Now go down a few levels and start to look at your products and services – are you selling them at the correct price and the correct mix for your expected market? Is there a gap that you can fill with another product? Is there a product that is not performing as well a it should?

Next look at your company structure. Is your manufacturing, selling and fulfilment process as efficient as possible? Do you have the right staff at the correct place and are they trained?

Lastly look at your financials. Do you have enough capital and cash flow to do what you want to do and keep your company afloat? Are your staff, fulfilment and manufacturing costs about right?

All of the above items are in a good, sound business plan. So write your plan and keep updating it on a regular basis.

Good luck.