Formal Business Plan: A Must Not Forgotten Thing To Do On New Business

Many people probably underestimate the importance of preparing a formal business plan. Eventhough your new business will be only home-based business or small businee, still require a plan to see where you are going to, right? Without it, it's like: "Welcome to the jungle!" without a compass to lead you where you are heading to.

I shared with you here why:

Three Reasons Every New Business Needs a Formal Business Plan
By Tiffany Kelley

It doesn’t matter if you are starting a multi-million dollar corporation or a roadside lemonade stand, everyone can benefit from having a formal business plan. In fact, it should be the very first step in establishing any new business.

Here are three reasons why –

1) A Business Plan Contains Feasibility Research.

The process of creating your business plan allows you to better understand the feasibility of your business idea. Unfortunately, not all new ventures are going to be successful because of outside factors, such as location, market trends, etc. By identifying this early on, you can save yourself a lot of precious time and money. Then, you can take what you have learned and formulate an alternative business proposal.

2) Having a Business Plan will keep you Budget-focused.

When you are first establishing your new business, it’s easy to become overzealous and, thus, accidentally overspend on things that you shouldn’t. By starting with a formal business plan, you equip yourself with the research needed to make intelligent purchasing decisions. For example, your plan’s “Marketing Strategy” will contain information about what advertising options will be the most effective and have the highest return-on-investment (ROI). A detailed business plan will help make the most out of a start-up business’ often tight budgets.

3) A Business Plan will help with Organization.

Making the effort to create a business plan will often end up saving you time in the long run because you will have organized your course of action. If you go into a new business venture without a plan, you will most likely run into various obstacles that could set you back in scheduling and money. However, if you’ve got a business plan, you will have researched the risks and will be prepared for the unexpected. It is a huge mistake to go into a new business blind – make sure you have a thorough business plan to guide you to success.

Tiffany Kelley is the owner of Perfection Consulting, which specializes in helping entrepreneurs with their business planning and marketing needs.

E-mail Tiffany at tiffany@perfection-consulting.com or visit http://www.perfection-consulting.com for more information!