Updated on January 21, 2016
5 Ways the Business Plan Writing Process Saves You Time and Money
1.The Business Plan Writing process makes you consider factors that often are overlooked- particularly in the realm of finances. Sure. The number one thing over looked- minimal costs that add up to be HUGE. When I wrote my first business plan, I was told I must look at the start-up costs realistically. I was instructed to go online and look up the price of the chairs I wanted, how much a printer would be, and the cost of office supplies. I also was forced to look up the buildout costs. Well. That was an eye-opener! I realized I was going to have to raise a bunch more money then I had already anticipated.
2.The Business Plan writing process is an opportunity to do a trial run. If you are writing a business plan as a pre-step to launching your business or a new portion of your business this is the opportunity to put your ideas to test. Every piece of the process teaches you to be considerate of the cause and effect aspects of your business. This saves you wasted time AND money.
3.The Business Plan gives you perspectives on how to stand out. Through the process of writing a business plan, you will be asked to look at your industry and your competitors. Often this is quite helpful. You can learn from them what has worked and not worked, which saves you time and money. It also may help you be more confident in marketing your business because you are confident you know your strengths and weaknesses compared to your competitors.
4.The Business Plan writing process allows you time and space to find the right elements for you business. When you write a business plan, you take it section by section. This gives you the opportunity to look at your business one piece at a time, which gives you space to be focused in your decision making. This rarely happens once your business is in motion because you have so many things going on at once and you are usually wearing more than one “hat.” Being focused means you can research in order to make appropriate decisions, which hopefully will keep you from having learn the “hard” (and expensive) way.
5.The Business Plan writing process will teach you more about how to read and create financial statements. Many people who start businesses know a lot about their passion, but aren’t completely experienced with other components of running a business. It is ok to not be an expert in every part of their business, but you should know at least a little bit of every part. The financial section is particularly important. The money is the blood line for the business and if you aren’t sure how to read and manage important financial processes, you run the risk of being scammed in the future. The business plan writing process helps you to start to make friends with these reports.