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Benefits of Business Plan & Feasibility Study

Benefits of Business Plan

There lot of benefits of having a business plan before going into that business. The benefit of having a business plan can not be overemphasis, it goes beyond just finding lenders, its a strategy that takes into account the resources and goals you have now that can help you grow your business.

The say when preparedness meets opportunity success become inevitable, in other words, success comes to those who plan for it. A business plan is like blueprint for your business.

Its almost like building a house, you have to get the architecture and plan for the house ready, the kind of material you want to use and the way we want the house to look but the slight difference is that a business is not static. Many of us think that a business plan is a piece of paper that we put together when we are starting the business and then toss aside but it isn’t.

A business plan deals with the objective of the business, the business plan for any business will change over time as the objective of the business changes so its an important tool for managing and growing your business. You can learn how to write a business plan

A good business plan lays out a vision of growth and the steps you need to take on how to get there.

Below are benefits and importance of business plan

1. Help Find Funding, Such as Bank Loans

To get loans or funding from investors or capitalists you need to show a business plan. Investors or capitalists want to see a good business plan so they will know that they are investing in a business that will grow. You might be a young entrepreneur or an established market leader looking for capital investment having a good business plan gives you the chance of getting the money you need for the business.

Its important to get a clearly written business plan that describe the opportunities. Investors will want to know why they will be better off investing in your business rather than another or better still leaving their money in their account.

Investors will want to know what the Unique Selling Proposition (USP) for the business is and also the reason people will buy from you.

If you have well written and a detailed business plan, all of these points will be conveyed very clearly to your investors so they will know they are putting their money into the right investment.

2. Help Manage Effectively

We often make the mistake of thinking that a business plan can only be useful when starting a business, in case you do not know a business plan is a good tool for established businesses.

As your business grows and evolves, things change, for example, the number of your employees, your yearly budget, financial targets and client targets and you will need to monitor this change and so the business plan needs to be revised as new goals are set.

3. Strategies

This is a very important aspect of a business plan it helps you pinpoint the best strategies to use. A good business plan helps you to know where you are and where you are going. There has to be good strategies that you will need to put in place to get you to where you want to be.

4. Clear Direction

A good and well written business plan helps you define what your business is all about or what its going to be over time. The clarity of your purpose should be so defined so you can a have a clear direction and description of the business and the vision of the business.

5. Future Vision

To plan for the future of your business is very important because businesses evolve and grow over time. A business plan that has a future vision can help you plan effectively for changes and new innovations

Benefits of Feasibility Study

A feasibility study analysis how viable or successful an idea is considering its economical, operational, technical, legal factors.

To be successful in your business there are some qualities that you need to have, you have to be a creative thinker, passionate, tenacious, flexible, able to tolerate uncertainty, and of course able to take risks. With all of this qualities without good feasibility study for that business you are unlikely to succeed

Feasibility studies are used in the early stages of planning the business or project, it helps you with good insight for better decision making and prevent you from taking unnecessary risks.

Economic Feasibility

This is to determine the cost, viability, benefits that are associated with the business before allocating the financial resources.

Operational Feasibility

This deals with how well a business takes advantage of its opportunities and solves problems in the industry. Also it analyses how a business plan satisfies the requirements identified in the analysis phrase of the business

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