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Why Is a Business Plan Important

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Why is a business plan important

The success of your business will depend largely upon the decisions you will make. A business plan allocates the resources and measures the results, helping you to set realistic goals and take decisions.

You may have asked yourself why should you spend your own time and energy drawing up a business plan. Bear in mind, first and foremost, that lack of planning leaves you poorly equipped to anticipate future decisions and actions you should take to run your own business successfully. On the other hand, a really sound plan can act as a reality check. The process of putting a business plan together, including the thought you put in it before you actually start to write it, forces you to take an objective, critical, non-emotional look at your business project in its entirety.

A business plan is a performance tool

The written business plan is an operating tool which, if properly used, will help you manage your own business and work very effectively towards its final success. Your business plan will allow you to plan and set realistic goals and objectives for your company's future performance, and, if it is maintained, will also provide you with a basis for evaluating and controlling the whole company's performance in the future.

A business plan is a message sender

The completed business plan sends and communicates your own company's ideas and message to many people: employees, outside directors, lenders, and potential capital investors outside your firm. A business plan helps you to do that in an organized, credible way. Also, the process of planning helps you to determine if your vision is in fact realistic, and tells you what you need to do in order to achieve it.

A business plan is a tool for motivation

The development of your own business plan is among the best ways for you to communicate how really well you understand your own business and thus to describe your vision. Without proper planning, it wouldbecomes impossible for you and your associates to get all of your employees reading off the same page of the book and then generating energy through high levels of team work together. It is not possible to motivate people if they do not know where they are going to, or what they are trying to achieve.

A business plan is a management development instrument

Putting together your own business plan is going to help you to develop as a manager because it will certainly give you practice in thinking and figuring out any problems about competitive conditions, promotional opportunities or situations that may be beneficial or harmful to your own business.

A business plan is a guiding map

Your business plan, once it is completed, may give you and your employees a clear set of goals and a direction: a roadmap to follow in guiding your own business through both the good and the bad times.

These are the main three things that a Business Plan should provide.

Much more than anything else, a good business plan should clearly communicate your own ideas and plans. To accomplish this goal, a plan must include:

• Focus evidence. What thing (or things) do you do exceptionally well?

• Understanding of which customers wou are going to target. Define or list your target customers.

• An appreciation for your investors / lenders’ needs. What are their needs, their terms, their expectations?


Comprehensive career education glossary. Definitions of career education and career builder terms.

Adult basic education.    Adult general education    Adult secondary education.    Adult student.     Apprenticeship.    Aptitudes.   

Assessment.    Attributes.     Career.     Career branding.     Career Carnival.    Career change.    Career cluster.    Career coach.   

Career counseling.    Career exploration.    Career development.    Career fair.    Career guidance.    Career-Interest Inventory.    

Career mentoring.    Career objective.    Career paths.    Career planning.    Career program certificate.    Career resources.   

Career Trek.    Competencies (proficiencies).    Competency-based education.     Community Education.   

Continuing Workforce Education.    Co-operative career education    Cover letter.    Curriculum-Integrated program.   

CV. Curriculum Vitae.    Degree Vocational Education Program.    Demand occupation.    Distance education.    Doctorate.   

Dislocated worker.    Employability.    Entrepreneurial skills.    Formation.    Foundation skills.    Freelance career.    Head hunter.   

Home-based careers.    Human capital.    Human performance technology.    Human resources.    Immersion courses.    Internship.   

Job satisfaction.    Job shadowing.    Life coaching.    Lifelong learning.    Mentor.    Mentoring.    Moonlighting.    Motivation letter.   

Non-traditional careers.    Portfolio.    Postsecondary.    Prerequisite.    Real Game.    Resume.    Sabbatical year.   

School-to-career program.    Self-employment.    Self-instruction.    Skills.    Undergraduate.    Work-based learning.   

Work exploration.    Work readiness.    Work study.    Workforce development education.    Youth apprenticeship.

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