Many wonder why a business plan? Well, here are the Top 7 benefits in my view:
1) Forces you to summarize the business model
2) Establishes goals, direction, gaps and action plans
3) Forces alignment
4) Establishes performance metrics and accountabilities
5) Helps prioritize budgets and hiring decisions
6) Creates core content that can be repurposed for VC presentation deck, prospectus and sales collateral
7) All serious businesses have a business plan whether it is de-facto or intentionally stated.
More: Most customers, investors and other stakeholders will demand to see a business plan – on paper and/or permeating your business.
Many corporations do a three year planning cycle with annual updates.
Most investors require five year financials – which need justification with a business plan.
Now better get on with it to update your business plan!
© Strategy Dynamix, LLC All Rights Reserved
What is your perspective? Please share your thoughts in the comment section below.
About the Author
Sylvester (Syl) Di Diego, Managing Partner, Strategy Dynamix, LLC is a venture advisor and interim executive who delivers venture accelerator solutions, He has assisted hundreds of entrepreneurs and investors to successfully navigate the venture growth lifecycle and helped to raise $300 million of capital. Learn more about Syl and connect with him at http://www.strategydynamix.com/aboutus/executives.php.