10 Reasons Why Every Small Business Needs a Business Plan

I don't know how many reasons there are why every business needs a business plan. But I can tell you this, any business without a business plan is doomed. It closes shop pretty quickly, and if it survives, it doesn't do so beyond its infancy.

A business plan, to put it simply, is a document that stipulates the goals of a given business venture, why the owners think those goals can be attained and how to attain them. In other words, it is a map for a business, showing who and where they are, what it is set out to do, and how it will do what it says. Makes sense? If it doesn't, you can try Uncle Google!

The cliche has it that if you fail to plan, you plan to fail. Nothing puts it as succinctly.

It is not enough to have a good idea for business. It doesn't not cut it to know that your friends and relatives like your idea. It doesn't make up for much to say you sold groundnuts in college and you were very successful.

An entrepreneur who is cut for real business knows that a well written business plan is the most invaluable asset  they will ever have. If you go to Church every Sunday, or to the Mosque every Friday, take your business plan with the same seriousness as you do your Bible or Koran. We keep referring to these religious books every now and then when our faith falters or when faced by uncertainties or you know, when we need some inspiration. The same should apply to the business plan. You need it for almost the same reasons!

Let me not blabber on. If you haven't gotten the gist yet, kindly go back to the top and start reading this again! Here are the ten reasons why you need a business plan.

1. It shows seriousness and commitment on your part as an entrepreneur. Those who have tried writing one know that it takes a lot of time, commitment and discipline to do it. It also shows that you know where you want to go and how to go there. It thus makes you sound like a credible entrepreneur.
2. It helps you understand your customers better.
3. It helps you get partners and/ or financing.
4. It helps you figure out your competition and how to beat them in the game.
5. It helps you determine how much you need.
6. It helps you tell whether the venture you have or the model is feasible. 
7. It gives you the parameters with which to judge your business.
8. It helps you figure out how to re-position your business to deal with changing times.
9. It helps you tap into new areas and expand.
10. It helps you document the important aspects of your business.

I mentioned at the  beginning of this article that I know not how many advantages a business plan has. But get this from me, without it, there isn't much that you will be able to do or become. 

This is a wonderful resource for entrepreneurs. Take your time and learn: SME Toolkit Kenya (click here)