Why go through the trouble of constructing a business plan? Here are five good reasons:
1. The process of putting a business plan together forces the person preparing the plan to look at the business in an objective and critical manner.
2. It helps to focus ideas and serves as a feasibility study of the business's chances for success and growth.
3. The finished report serves as an operational tool to define the company's present status and future possibilities.
4. It can help you manage the business and prepare you for success.
5. It is a strong communication tool for your business. It defines your purpose, your competition, your management and personnel. The process of constructing a business plan can be a strong reality check.
The finished business plan provides the basis for your financing proposal.
Planning is very important if a business is to survive. By taking an objective look at your business you can identify areas of weakness and strength. You will realize needs that may have been overlooked, spot problems and nip them before they escalate, and establish plans to meet your business goals.
The business plan is only useful if you use it. Ninety percent of new businesses fail in the first two years. Failure is often attributed to a lack of planning. To enhance your success, use your plan! A comprehensive, well-constructed business plan can prevent a business from a downward spiral.
Finally, your business plan provides the information needed to communicate with others. This is especially true if you are seeking financing. A thorough business plan will have the information to serve as a financial proposal and should be accepted by most lenders.
Hancock and Whitney Bank stand ready to assist you with a variety of financial solutions for your business. Locate a branch near you and talk with one of our helpful bankers.
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This information is provided for educational and illustrative purposes only.
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