SELLING YOU ON YOUR BUSINESS You’ve probably heard it said that a business plan is a selling … While it is very true that your business plan will be an … aid to you in selling your bu
SELLING YOU ON YOUR BUSINESS You’ve probably heard it said that a business plan is a selling document. While it is very true that your business plan will be an invaluable aid to you in selling your business to others, you may not have considered that it can be a great way to sell or re-sell YOU on the business you have started. business By examining how your ideas and products fit into the competitive environment, you can get excited about the potential of your business and become reinvigorated. A business plan can also be a good way to determine new directions your business should go. As you delve into the marketplace, examining your competitors and their products, and consider market trends, you may see new avenues for your business to follow and may even discover a potentially hot market niche that isn’t being filled. This could lead to a whole new direction for your company and vastly expanded revenues. By contrast, the discovery process you follow to develop your business plan might show you that the path you thought you wanted to follow isn’t viable, saving you months and years of frustration and a lot of cash! It may help you see a different path you need to follow and/or encourage you to concentrate on a different aspect of the business. HOW DOES A BUSINESS PLAN SELL YOUR BUSINESS? In order to succeed in today’s challenging business climate, you will need to exploit every opportunity that comes your way. The only way to do this is to understand where the opportunities are and put your business into a position to pursue them. A business plan makes this possible. Just as importantly, your company’s business plan is seen by others as your company representative. It tells interested parties who you are, what you do, how you fit into the crowd, where you’re going, and how you’re going to get there. Your business plan can help you with the following: · To obtain bank financing: Bankers are understandably nervous about risking money on new endeavors, and there are many more companies out there asking for money than there is money to be distributed. Companies that have a written business plan have an edge because banks understand the importance of formal planning. · To acquire investment funds: To investors, a business plan is a screening device. If they like what they see in your business plan, they’ll take the next step and talk to your executives. · To arrange strategic alliances: A business plan is often the only tool an established company has to assess whether they want to do business with a company that is not yet established. · To obtain large customer contracts: Large customers are reluctant to commit funds and take business risks to do business with an unknown entity. Your business plan helps them understand that you are well grounded and know what you’re doing. · To attract quality employees: A well designed business plan allows potential, key employees to get a comfort level with your company so they will be willing to commit their professional future to you. · To complete mergers and acquisitions: Companies that are looking to buy other companies look closely at these companies’ business plans before deciding which ones they want to pursue. THE RESULTS OF NOT CREATING A PLAN CAN BE A KILLER FOR YOUR BUSINESS! Your business plan is an invaluable tool for helping you understand your business environment so that you can optimize your revenues. Through this important document you will come to understand your competitive environment. You will also be able to determine how you should market your product and what avenues your sales efforts should pursue.