What are the Benefits of Writing a Business Plan?

By Lanee’ Blunt
Advantages of a business plan--
Image by ljleavell.

Having a well prepared and written business plan is key to your business success. When you begin writing the plan, make sure that you have defined your business purpose, conduct market and competitive analysis, and developed your business strategy. A business plan should describe the major aspects of your business, such as products or services, staffing, facilities, and marketing.

Identify Problems
One benefit of writing a business plan is that it will help you identify your problems by helping you look at your idea tangibly and if it is feasible or not to forge ahead with the idea.  It determines if your product or service is marketable and if it will be profitable.

Road Map
Another advantage of writing a business plan is that it provides an estimate of what your start-up cost will be.  You can use it as a guide for operations, management and measure actual financial performance.

Convinces lenders or investors to fund your business, it gives funding requirements and any future funding requirements over the next five years.  You can outline your funding requirements how you intend to use the funds you receive. Business plans are good summaries of operations and lenders and investors request them as a tool when you are seeking funding for your business venture.

SBA: Funding Request
Dummies.com: Benefits of Writing a Business Plan; Steven D Peterson, Peter Jaret, Barbara Findlay Schenck
Wiki Answer: Benefits of Having a Business Plan; Crystal


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