Determining your goals and objectives will point your business in the right direction.
Goals tell you where you want to take your business and objectives show you how to get there, so in order to determine your objectives, you’ll first need to decide on your goals.
Having a business plan will put everyone on the same page and prevent any misunderstandings early on.
A well-written business plan will provide your business with the structure it needs to run smoothly by laying out what your priorities should be and the actions you’ll need to take.
“As Market Analysis assumptions are proven and new information becomes available, the plan evolves.
Start-up business plans are highly speculative because the business is unproven.” On the other hand, a well-established business has the validity of years of experience and can develop a more detailed plan from the start.
“Without a clear and specific purpose or set of purposes, a business plan has little value.” For example, is the plan’s purpose to help you raise capital?
Or is it to develop a strategic framework to move from points A to point B?
Writing a business plan requires you to meticulously research the market, which will help you learn more about what your customers really want, how much they’d be willing to pay, how you can attract them, and who your competitors are.
In the early days of a business venture when things are still new and exciting it’s easy to become so passionate about your ideas and plans that you fail to see the potential downsides and put adequate safeguards in place.