Business plans – Advantages & a roadmap to achieve the milestones

Last Updated at: January 14, 2020
205
Business plans - A roadmap to achieve the milestones

Imagine…… you are running your business without any track of the finances, operations, and the goals of the company. Just working and working all day long does help in setting up the business. A right and well-planned strategy is a must, else things will be messed up in more ways than one can imagine. 

As per the statistics, the success percentage of a business is 30% if one has a comprehensive business plan and goals. From what the business aims at to why one must invest in the business, this plan must have all of it.

Benefits of a business plan

With the number of aspects that have to be kept in mind, business plans are essential for both start-ups and well-established businesses. They help start-ups to grow and have a place in the competitive industry. While for the established businesses, they are a must to keep up with the forever changing trends of the industry.

As per the records, about 50% of the start-ups end up failing and terminating. The primary reason for this being the unplanned strategies and not having decided short and long-term goals.

Start Your Business

It is not mandatory to have a full-fledged book-sized business plan. It can even be of a single page or just a presentation. Anything will work till all the goals and objectives are laid out for successfully carrying out the plan.

These plans offer several benefits which include the following:

  • Prioritizing tasks:

Not everything can be done at the same time, and not all the tasks hold equal value. With a business plan in hand, you can divide the tasks as per the efforts, time, and finances availability, helping you make the best use of all the resources available. These priorities can change as per the demands of the business.

  • A complete picture:

Business plans are like a visual representation of your ideas and actions culminated into one. You can see how the business is going to work out. This helps you understand the compatibility of your goods and services with the target market, allowing you to build better ones to set your standards apart from all of it. 

  • Handling changing trends:

The trends of every industry keep on changing and fluctuating, with increasing and decreasing values as new developments are being done. However, it is quite a tedious task to keep on changing the business ideas completely to cope up with these trends. This is where the business plans come into action. One can change the priorities and tasks, and continuously review the progress of the business with such plans.

  • Regular reviews:

Tracking the business progress and tasks accomplished becomes more comfortable with business plans. It also helps to measure the success and failure ratios of the strategies and the expectations, allowing you to make it better by changing the plan of action. These reviews must be carried out regularly, either weekly or monthly.

  • Managing cash-flow and finances:

Business is not just about profits. There are a lot of financial aspects that have to be accounted for continuously. These include both the profits and losses, the investors and their investments, in case of loan debt repayment has to be prioritized. Additionally, the record of both cash in-flow and out-flow has to be adequately maintained to carry out the business in proper financial formats.

  • Goals and achievements:

The business plans act as a pivotal factor in measuring the short and long-term goals achieved at regular intervals. These can even include performing daily tasks or making a certain profit level or a set number of customers or anything that helps you accomplish the final goal. This helps the individual be motivated and perform even better.

  • Managing a team:

No business can be set up by an individual. With a good business plan and target actions, you can hire the employees for the required tasks that have to be completed. However, a good team is a necessary part of the successful establishment of the business.

  • Realistic and practical strategies:

Running a business is not an easy one. It isn’t about dreams, but about practical actions that can be carried out. And also the problems that follow, must-have solutions to them. 

  • Risks associated:

Every business has a set of pros and cons. Along with the profits and market-value that a business brings in, it is also associated with several risks. A business plan caters to all of these by helping you understand the present as well as future scenarios. 

Conclusion

Whether it be for the individuals, investors, or the employees, it is crucial for start-ups and businesses to have a good set of strategies and plans to grow without collapsing or failures. No matter what, one will have to face a lot of problems and hurdles before achieving the final goal. 

 

Business plans – Advantages & a roadmap to achieve the milestones

205

Imagine…… you are running your business without any track of the finances, operations, and the goals of the company. Just working and working all day long does help in setting up the business. A right and well-planned strategy is a must, else things will be messed up in more ways than one can imagine. 

As per the statistics, the success percentage of a business is 30% if one has a comprehensive business plan and goals. From what the business aims at to why one must invest in the business, this plan must have all of it.

Benefits of a business plan

With the number of aspects that have to be kept in mind, business plans are essential for both start-ups and well-established businesses. They help start-ups to grow and have a place in the competitive industry. While for the established businesses, they are a must to keep up with the forever changing trends of the industry.

As per the records, about 50% of the start-ups end up failing and terminating. The primary reason for this being the unplanned strategies and not having decided short and long-term goals.

Start Your Business

It is not mandatory to have a full-fledged book-sized business plan. It can even be of a single page or just a presentation. Anything will work till all the goals and objectives are laid out for successfully carrying out the plan.

These plans offer several benefits which include the following:

  • Prioritizing tasks:

Not everything can be done at the same time, and not all the tasks hold equal value. With a business plan in hand, you can divide the tasks as per the efforts, time, and finances availability, helping you make the best use of all the resources available. These priorities can change as per the demands of the business.

  • A complete picture:

Business plans are like a visual representation of your ideas and actions culminated into one. You can see how the business is going to work out. This helps you understand the compatibility of your goods and services with the target market, allowing you to build better ones to set your standards apart from all of it. 

  • Handling changing trends:

The trends of every industry keep on changing and fluctuating, with increasing and decreasing values as new developments are being done. However, it is quite a tedious task to keep on changing the business ideas completely to cope up with these trends. This is where the business plans come into action. One can change the priorities and tasks, and continuously review the progress of the business with such plans.

  • Regular reviews:

Tracking the business progress and tasks accomplished becomes more comfortable with business plans. It also helps to measure the success and failure ratios of the strategies and the expectations, allowing you to make it better by changing the plan of action. These reviews must be carried out regularly, either weekly or monthly.

  • Managing cash-flow and finances:

Business is not just about profits. There are a lot of financial aspects that have to be accounted for continuously. These include both the profits and losses, the investors and their investments, in case of loan debt repayment has to be prioritized. Additionally, the record of both cash in-flow and out-flow has to be adequately maintained to carry out the business in proper financial formats.

  • Goals and achievements:

The business plans act as a pivotal factor in measuring the short and long-term goals achieved at regular intervals. These can even include performing daily tasks or making a certain profit level or a set number of customers or anything that helps you accomplish the final goal. This helps the individual be motivated and perform even better.

  • Managing a team:

No business can be set up by an individual. With a good business plan and target actions, you can hire the employees for the required tasks that have to be completed. However, a good team is a necessary part of the successful establishment of the business.

  • Realistic and practical strategies:

Running a business is not an easy one. It isn’t about dreams, but about practical actions that can be carried out. And also the problems that follow, must-have solutions to them. 

  • Risks associated:

Every business has a set of pros and cons. Along with the profits and market-value that a business brings in, it is also associated with several risks. A business plan caters to all of these by helping you understand the present as well as future scenarios. 

Conclusion

Whether it be for the individuals, investors, or the employees, it is crucial for start-ups and businesses to have a good set of strategies and plans to grow without collapsing or failures. No matter what, one will have to face a lot of problems and hurdles before achieving the final goal. 

 

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A lawyer with 14 years' experience, Vikram has worked with several well-known corporate law firms before joining Vakilsearch.