Three reasons why every family and owner-managed business needs a business plan
‘A Goal Without A Plan Is Just A Wish’
A business plan sets out in writing the business, its objectives, strategies, the market it operates in and financial forecasts. For many businesses, they are only prepared when requested, for example by a lending institution or investors. However, the business plan should also be used as a tool to focus the mind of senior management on the goals of the organisation and as a roadmap to success. By having a formal business plan in place progress can be measured, pitfalls identified and targets set.
There are three key reasons why a good business plan is one of the most valuable tools your family or owner-managed business can have:
- At a strategic level, it clarifies business goals and ensures that shareholders, management and employees understand their individual roles and responsibilities.
- From a business development perspective, it makes it easier to attract investment and raise finance. Funding applications are more likely to succeed when they are supported by a well thought out business plan and credible financial projections.
- Competing for talent is more successful when you have a well-defined strategy. It’s also easier to retain talent as a good business plan helps make career paths clearer.
A business plan should be flexible, reviewed at regular intervals and updated as and when required. A good plan will address more than just the financial forecasts. Matters to be incorporated in the plan could include:
- The nature of the business
- The mission statement & ethos
- Key personnel
- The target market – size, sustainability, strategy and access –
- Financial projections
- Financing requirements to achieve the stated goals
Whether the business plan is to be used to support lending from a financial institution, to attract investment, to be a tool of management or all three, we can help to ensure that it has the right focus and ticks all the boxes.
As well as benefitting internal operations, a robust business plan is a competitive advantage when recruiting talent and is a valuable tool when seeking investment. However, it is vital that the plan is realistic and supported by credible financial projections. HLB Ireland provides comprehensive advice and support to help owner managed businesses refine strategy and achieve goals. For information on these services visit our services page or please feel free to contact a member of our team.