Did you know that companies that use business plans tend to enjoy more success than those which do not? It is true, and there are logical reasons for this that many people fail to consider. All too often, once a business is launched, the owners tend to think that they no longer have a need for a business plan. The reality however is that whether a company is thriving, holding it’s own, or even struggling, a business plan is exactly what is needed.
Ongoing business plans are not that unlike a roadmap. If a company is doing well, it help pinpoint the exact reasons why it is enjoying success, how to maintain that success and as importantly it will help ferret out anything that is eating into the profit margin which can be corrected. For businesses that are treading water, it helps provide a general lay of the land and point decision makers in directions to help amplify the positive results being achieved. For a company in trouble, the need for a business plan is twofold.
When a company is struggling, there needs to be an accounting of what is going on. A business plan can serve as a stopgap audit of sorts immediately indicating what is and is not hemorrhaging. Aside from that important function, it also helps lay the groundwork to land monetary assistance. No one is going to lend funds to a struggling company unless they can clearly demonstrate what is wrong, how it will be fixed and when profitability can be expected. A business plan can deliver all of that and more.