One of the questions I regularly get asked is; “I’m experienced in running my own business and I don’t need finance so why do I need to spend time writing a business plan?’

I always remind my clients that although starting or running your own business can be rewarding, it can also be very stressful and, if things don’t go well, it can turn into an absolute nightmare. Unfortunately, statistics show that half of all small businesses fail in the first two years and 80% fail within five years.

In today’s market, business is challenging. Even if you don’t need financing you are still putting your own money at risk not to mention your time, energy and self-esteem. Believe me, I’ve been there and I can tell you that the one thing all successful businesses have in common is a clearly defined business model. You may have a great idea for your business but is it competitive in the marketplace? Do you have the assets and resources you need to implement your idea?

A well written business plan will help you:

• Define your customer base
• See where you sit on the competitive landscape
• Create financial forecasts
• Help reduce risk

The systematic approach used for writing your business plan will help you think about your ideas clearly and objectively and will ensure you have all the relevant facts before proceeding with your idea.  This greatly increases your chance of succeeding.

Of course, a business plan does not guarantee success but it will definitely increase your odds. Lastly, it’s important to remember that business plans are dynamic and need to be reviewed and updated regularly to reflect current market trends.  If your business plan is filed away somewhere gathering dust, it won’t work.