Startup Strategy: Why Business Plans Are Important For Growth

Startups are on the rise as tech companies take the market by a storm and young entrepreneurs come up with interesting solutions and ideas. Our generation tends to barge headfirst into things. We don’t think we act and react. Often this is beneficial as it helps solves things without elongating the process. However, when it comes to startups this may be the worst strategy.

To have a successful startup you need to have a solid game plan in mind. Without a plan of action, you will be quick to find yourself wandering in the business world with your priorities, goals, and results all lost in the wind. Planning is essential for the long-term success of any business. Whether you are just stepping into the business world or growing your startup, a well-thought-out business plan is a vehicle you need to get you there.

“Going into business without a business plan is like going on a mountain trek without a map or GPS support — you’ll eventually get lost and starve!”

― Kevin J. Donaldson

Business Plan, Defined

A business plan is essentially a road map for your startup so a business can plan its future and avoid bumps in the road. It describes your objectives, business goals, end game, and much more. Having a solid business plan is essential for startups as it allows individuals to break down their business goals into smaller objectives. The time you spend drafting your business plan thoroughly and accurately and keeping it up-to-date is an investment that pays big benefits in the long term.

You may question whether or not to spend time drafting a business plan. Oftentimes people find it tedious and unnecessary. That is because they don’t understand the actual value of a business plan. Planning can lead your startup to new heights. The foundation of any startup or business is important as it lays the ground for the future. Therefore a business plan is the core of that foundation. It answers all the essential startup questions, helps you plan and strategizes for the future, as well as avoids any mishaps or losses down the road. Here’s a list of reasons to convince you to go draft that strategic business plan to give your startup a boost.

Crucial for Business Growth

With a business plan, you always have a complete picture of your workings ahead of you. How can you expect to expand if you don’t have a plan laid out? Or how can you strategize your business without creating a strategy? To grow and strategize creating a business plan is necessary. You will need to allocate resources, prioritize tasks and objectives, set goals and manage the company. For this, you will need the help of a proper plan and without you will just be a fish out of water when it comes to growing your startup.

A Roadmap to Specify Key Objectives

Startups and small businesses need to focus on setting targeted objectives. They need to focus on brand identity, target markets, products & services. This will enable the smooth transition and growth of the company. Good managements require the setting of solid objectives and goals. Businesses that run without a sound business strategy and set objectives often fail. So any good entrepreneur needs to be strategic, develop a plan, and not just wing it and expect to succeed.

Hiring, Asset Acquisition, & Rent

When talking about resources and assets, planning is a necessity. How are you going to calculate costs, manage assets, acquire goods, and hire employees without a proper strategized plan of action? A business plan will help you map out all of these things. When you should hire, what you should acquire, how you should manage your assets, and what your next move should be. A business plan will help you plan long-term resource management with ease.

Essential for Network Developments

For any business or startup to flourish developing alliances and networks is essential. Use your plan to set targets for new alliances, communicate with those alliances, deal with professionals, target attorneys, clients, marketers, and expand your network.

Help Prioritize Objectives

Prioritization is important in day-to-day life, and crucial in any business, startup, or company. To prioritize you need your tasks, objectives, goals, and events all lined up. Only a business plan can do that. Your startup’s life goes by in a flash from quick phone calls, to putting out fires, to rush decision making. To make sense of it all, manage, and prioritize a sound business plan is essential.

Set Milestones

Good business planning sets milestones you can work towards. These are key goals you want to accomplish, like reaching a specified sales level, hiring that sales manager, or opening a new location. A business plan will help you set sound Milestones that you can work towards.

Accountability

With a business plan, you can set business expectations and track results. It’s a great tool to review if you are on the right track or not in terms of business, profit, and growth. It’s a tool for regular review of what happening, what happened, and what will happen. Good work shows up on display and so do disappointments.

Manage Cash, Profits, & Losses

Connecting the dots in cash flow is one of the best benefits of a business plan. It will allow you to track your profits and losses, manage your cash and assets, and plan long-term. It can be an essential tool to help you from going bankrupt. Cash flow requires planning and management when there are multiple factors involved. Like purchasing assets, acquiring resources, sales tracking, product inventory, and more. A plan will help you manage all of this with ease.

Ultimately planning is the key to success. If you want your business to expand and flourish you need a solid strategic business plan from the start. You can not reach your destination if you don’t know where you are going. Similarly, you can not succeed in your startup if you don’t plan your end game. A business plan for entrepreneurs is a very important strategic tool. It will help you achieve both your short-term and long-term goals, grow your business, and incentivize.

“Without goals, and plans to reach them, you are like a ship that has set sail with no destination.”

― Fitzhugh Dodson, author