5 Reasons Why You Need a Business Plan for Your Small Business
Business plans have been used for a long time, though certain entrepreneurs find them more useful than others, as a business lawyer Abingdon VA offers might attest. Some business owners think business plans are outdated documents with the sole purpose of swaying bank managers for better financing. A business plan is more than that, though. It is a tool that can help you run your enterprise more efficiently.
Managing a small business doesn’t have a “one size fits all” solution, but a solid business plan can act as a blueprint. A business lawyer in Abingdon VA, such as Mark T. Hurt, may help you create a plan for your company.
If you’re still on the fence, here are five strong reasons why creating a business plan can be a smart investment of your time and energy:
1. Establish a Game Plan
A standard formula may not exist for running a company, but every startup needs a working model. The first thing you want to define is what your business is trying to achieve. What problems do you intend to solve among consumers? How will you brand and market your products? What about the price? Lack of a business model is one of the top reasons Forbes credits to the failure of 80% of startups.
2. Understand the Marketplace
It’s a recipe for failure when someone is running a startup without knowing who their competition is and how the industry operates. To acquire a portion of the market, your products must offer the consumer something that the competition doesn’t. What are your rivals doing poorly? Why do consumers favor some brands over others? A business plan should help you learn these answers.
3. Plan Your Financing
Even if you are not going to ask for a bank loan to fund your startup, it’s essential to have information about how much your venture will cost. A business plan estimates different expenses, such as renting or buying commercial space, hiring staff, and acquiring assets like equipment and inventory. If your company needs investors, then a business plan is a must-have. Interested parties will want to see what they are investing in. Whether you are approaching private investors or a bank, you’ll want to have a concrete business plan.
4. Avoid Mistakes
Mistakes in business are common, but some of them are preventable when you have a blueprint to stick to. A business plan allows you to anticipate potential problems that your company may face. Legal issues are some of the most common problems. By hiring a business lawyer Abingdon VA can provide before problems arise, you can ensure that your company adheres to all necessary regulations, compliance, and certification requirements. The typical Abington business lawyer handles a host of other business needs ranging from employee contracts to business partnerships.
5. Create a Plan For Growth
When writing up a business plan, an entrepreneur must establish benchmarks. Most companies usually set three- to five-year goals. By reviewing the performance of the enterprise after the required period, you can tell if the strategy is working. Based on the progress of the existing business plan you can decide if your company needs to pivot to a new approach. Note that business objectives evolve with time and therefore your plan will need adjusting after a while. An experienced business lawyer Abingdon VA has to offer may help you create a strong business plan that can be modified easily over time.
Mark T. Hurt: A Business Lawyer Abingdon VA Companies Depend On
For more information about creating a business plan, please contact The Law Offices of Mark T. Hurt to schedule a consultation with a business lawyer Abingdon VA trusts.