Plan Ahead: Business Plans for Small Businesses
70% of Small Businesses are owned by a single person. This entrepreneur takes upon themselves all the relative risk and potential reward of opening a new company’s doors. We here at Electric Egg like to see small businesses succeed in the ever-growing global economy; as such, our team of expert gurus set out to explain to you, the entrepreneur, the vitality of a solid business plan in the success of your small business:
Let’s face it, money talks, and without a thorough and impressive business plan you are unlikely to secure funding for your entrepreneurial endeavour from outside sources. When approaching potential investors a cursory glance at your business plan or proposal can make or break the deal in 30 seconds – you thus want to make the best possible impression in the least amount of time. Most formal institutions such as banks from which loans can be obtained for business purposes require the submission of a business plan with your application for the loan. The business plan or proposal plays the second largest role in determining whether or not your business gets approved for a loan, second only to your credit score.
Your business plan is ultimately not only for viewing by your potential investors, but by you and your employees as well! A clear and concise business plan gives an entrepreneur and small business employees a clear sense of direction and goals and it is proven that goal-oriented working is more effective and yields better outcomes than work done toward no specific outcomes or stated aims. A clear business plan which includes effective vision and mission statements will also allow you as the entrepreneur to measure the success of your business and correct any deviations from the desired course as soon as they become apparent.
3. Research and Understanding
The creation of a business plan forces you as the entrepreneur to consider harsh realities such as your business’s weaknesses and the potential threats to your company’s profitability. Engaging with this research not only allows you to enter the playing field level-headed but also with your eyes wide open. By becoming pre-emptively aware of your business’s weaknesses and any potential threats it may come under, you are best equipped to deal with said threats and weaknesses by implementing strategies to deflect the damage to your business. By doing the research you are enabled to come up with deflection strategies preemptively.