Growing? Starting? 7 Reasons You Need a Business Plan

By GoCanvas Team on November 11, 2022

Starting a business can be stressful, time-consuming, and resource-intensive. That’s even truer if you start operating without a clear business plan. Developing, enhancing, and considering your business plan, can help ensure you know what you’re doing, why you’re doing it, and how you will accomplish it. 

This article discussed the seven reasons you need a business plan to increase your chances of success. If you already understand the importance of a business plan but aren’t sure where to start, check out our business planner templates today. 

Continue reading to learn the importance of your business plan and where to get the best business plan template for your business. 

Why a Business Plan is Needed

Technically, you don’t have to write a business plan. However, in doing so, you set your business up for short-term and long-term success. That’s true regardless of the type of business you’re planning to start. A solid business plan can help you, your employees and potential partners answer the following questions: 

  • What are our company mission, values, and goals?
  • What weaknesses should we address to be more competitive?
  • What are our financial, staffing, marketing, etc., needs? 
  • What’s our long-term vision? 

Every business plan is different, but starting with a business plan template can help ensure you have a solid foundation to build on. 

1. Establish a Direction For Your Business 

Jimmy Dean once said, “I can’t change the direction of the wind, but I can adjust my sails to always reach my destination.” This is also true in the business world. Think of your business plan as sails. You can stay above water without them, but plotting a direction is challenging. 

Whether you use a business plan template or start from scratch, it’s an essential first step when forming an LLC, INC, S-Corp, etc. 

2. Understand Your Customers and Competition Better

A significant part of a business plan is analyzing your competitors and identifying customer profiles. A well-thought-out business plan can help you recognize specific advantages over the competition and exploit them. 

Additionally, identifying and creating customer profiles can help your marketing team target the right prospects, offer the best products, and meet them where they are (i.e., through social media apps, direct mailers, phone calls, text messages, etc.). 

3. Create Meaningful Milestones For Your Business

Big long-term goals can motivate you and your team to achieve the impossible. A business plan allows you to define those goals early in the process. This helps you plan and prepare for the next steps, which include financial, product development, marketing, and expansion goals. 

4. Identify Your Revenue Model and Financial Needs 

Do you know how your business will make money or finance big plans? Understanding your revenue model can help you identify and address potential problems before they happen. Further, a solid revenue model can help your team identify and attract potential investors, obtain business loans, and more. 

5. Attract Talent and Partners Who Align With Your Business Vision 

The first step to completing most business plan templates includes identifying your company’s mission and vision. Doing so will help you plan your business goals and be a roadmap to the type of employees and business partners you want to work with.

This can help your HR team pick the best candidates and help you choose business partners who will be an asset to your vision. 

6. Document Your Marketing Plan 

Effective marketing requires a solid marketing plan. Otherwise, you’ll choose where to target your customers, what to sell them, and how to retain them on the fly – which is never a good idea. A well-crafted marketing plan helps your business set attainable goals and identify clear parameters for the price of services/goods, services offered, target audience, and more. 

7. Ensure Your Business Can Evolve When Necessary

20% of small businesses fail within the first year. In many cases, they didn’t appropriately assess market needs, neglected to hire the best team, had too much competition, lacked sufficient capital, etc. For the most part, a solid business plan can address these issues and provide solutions before they overtake your business. 

Try a GoCanvas Business Plan Template Today – For Free 

Creating a business plan can be a stressful process. That’s why we’ve developed the perfect Small Business Plan Template Mobile App (works on iPhone, Android, iPad, Windows, etc.) to help build the best business plan for your needs. 

Follow the step-by-step instructions to complete the following: 

  • Executive Summary
  • Start-up Summary 
  • Market Analysis Summary
  • Milestones
  • Sales Forecasting
  • Financial Projections, 
  • And much more! 

Click here to try our Small Business Plan Template Mobile App today for free – no credit card required.