5 reasons we use a business plan
by Jennifer Lynne Matthews
author of Fashion Unraveled
A business plan is not the end of the world
Business plans can be intimidating for anyone, which probably explains why there are thousands of books on how to write one. But do YOU really need one? Answer this question:
Do you sell things you make, resell merchandise you buy or sell your services for a profit?
1. Yes, I make a living doing it.
2. Yes, I’m making some money but I’d like to make a living doing it.
3. Yes, but it’s just a hobby that brings in a little extra cash.
If you answered d, please proceed to the next article, I don’t know why you would even be reading about business plans. If you answered a, b or c, well then, we need to talk business plans.
I think the scariest words to an entrepreneur is “business plan,” so let’s make this subject a little less frightening. Here are 5 reasons we use a business plan.
1. Entrepreneurs are creative individuals, and as you may know, creative individuals are highly susceptible to short attention spans and the curse of unending multi-tasking. A business plan keeps these brave souls in check and organized.
2. In the excitement of starting a business, entrepreneurs want to buy anything and everything to get the business going. The business plan makes you lay out your planned expenses so you don’t go bankrupt before you even launch your business.
3. Business plans make us take everything into account and bring everything into perspective. It lays out what you expect to get out of your business, when you expect to see a positive cash flow and how you plan to get your customers?
4. Everyone has a million dollar idea, but how many of those people are able to make a million dollars off of it. With careful budgeting and forecasting, you can see if your million dollar idea is going to be your life force, transform itself into a thousand dollar idea or become the bane of your existence.
5. Because it’s for you and no one else!
The words “business plan” gets the reaction out of most as if someone scratched their fingernails down the chalkboard. But you know what? You can call it something else. Call it your gold plan, your kids college fund or your retirement plan, but for a business to be successful, it is a good idea to create a business plan even if you never show it to anyone but your cat Murray.
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A copy of this book was provided for review by Virtual Book tours