January 2, 2009, Newsletter Issue #192: 5 Reasons Your Company Needs a Business Plan

Tip of the Week

You know what your business does. You have plans for the future. Why bother with a business plan?

We tend to look at our businesses from within and often miss the bigger picture. A business plan allows us to step outside operations and see what’s really going on. Here are more reasons you need a business plan.

1. Set a plan in stone. Writing out your plan and objective for your business goes a long way toward making it happen. While laying it out makes it official, don’t be afraid to go back and make changes to the plan as necessary.

2. Make your team a part of the plan. Your employees like to feel like you know what you’re doing with your business. By sharing your business plan with them, they have an understanding of where the business is going, and can gauge their place in it.

3. Make smart decisions about buying assets. You may have bought equipment and long-term assets on an as-needed basis. A business plan lets you make arrangements in advance so that you’re not taken by surprise. For instance, if your lease is up on retail space in a year, include considering buying commercial property in your plan now.

4. Attract investors. Even if you’re not currently seeking financing, there may come a day when you will. Investors don’t talk to you if you don’t have a business plan, so get in the habit of using one now.

5. Take yourself seriously. The reason you don’t have a business plan yet may be because you don’t take your small business serious. Writing out your goals is a good exercise in really seeing if they’re feasible or not.

About LifeTips

Now one of the top on-line publishers in the world, LifeTips offers tips to millions of monthly visitors. Our mission mission is to make your life smarter, better, faster and wiser. Expert writers earn dough for what they know. And exclusive sponsors in each niche topic help us make-it-all happen.