Business Plan—So Worth It!

Whether you are a one-person operation or a large corporation, a business plan is essential. A properly drafted business plan can be the difference between a successful enterprise and a failed one. Business plans take time and may require professional help, but if done right, they are worth it. A business plan provides structure, serves as an effective marketing tool and ensures compliance with applicable rules. The Small Business Administration breaks down the different components of a business plan.

Business Plan—So Worth It!The process of drafting a business plan provides in itself an important benefit. It forces aspiring small business owners to gather the data necessary to determine whether a business will be viable and what one will need to implement it. Just having an idea or skill is not enough, as part of the plan one will need to conduct a market analysis to define the target market, determine if there is a need for the skill or service, and whether existing competitors are already serving that market. If there are competitors, a successful business plan will analyze the competitors to figure out how to offer a superior product or service.

Once the market analysis section is complete, the business plan needs to define an organizational structure that is best suited to implement the business. Each business is structured differently, but it is important to set up an organizational chart that best reflects the business’s goals and culture. The organizational structure will also clarify the ownership structure, which can be very important as the business grows or if there are any disputes.

In addition to operational efficiencies, a strong business plan will make it easier to obtain funding. Banks or potential investors will be more likely to lend to or invest in an aspiring business if the business owner can present financial projections that back up the funding needs.

A business plan has other benefits. A strong business plan will make any company stand out and increase their chances of success. At the Gierach Law Firm we have 30 years’ experience helping Illinois small business owners with every aspect of business venture, and we are here to answer any questions you may have.

 

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