We’ve all heard how crucial a business plan is for a new business that we tend to forget existing businesses need planning too. Many businesses miss out on the opportunity to manage themselves a little better because of the myth that only start-ups need planning.
Whether you plan on growing your business or even just maintaining its current level of success, without plans and goals how do you know which direction you’re heading in?
Below are some of the many reasons your existing business needs a plan:
Track and Monitor Growth
A variety of factors will impact on your business development growth including overall economic trends, location, specific market needs and economic trends. By actively planning and moving towards defined objectives rather than reacting to changes in the marketplace you will save time, money and stress.
With no plan, how can you accurately measure the business’ main priorities? Focus on the company’s strengths but don’t forget to include its weaknesses. Move the company in the direction you want it to head in, according to your long term objectives.
Selling your business
Whilst selling your business may not be in the pipeline at the moment, a business plan is a very important part of selling a business. Without a plan, how are potential buyers to know what you have and what it’s worth?
It will help you with cash flow
Understanding the difference between cash and profits will help you go a long way in business. You need to remember you don’t spend profits you spend cash and no planning in this area can leave you with a large financial headache amongst other things.
Your business plan should be updated annually to polish your company’s strategy and focus and to give you better direction. The business world is continually changing and your business plan should reflect the changes happening in the economy and act as your road map to success.