Benefits of a Well-Written Business Plan

A well-written business plan has several benefits to an organization such as acquiring funds, understanding the market, and guiding operations. It helps lenders understand the profitability of the business and allows for thorough market research and financial management. Different audiences, such as investors and employees, have specific interests that should be considered when writing a business plan.

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Business Plan
Student's name
Name of institution
Course
Date

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Introduction
Although it is not mandatory for a company to have a business plan, it is often vital
when it seeking finance. It gives summary of the plan that a company has for its business and
also make it evaluate the market for goods and services it offers. Writing a draft of a business
plan also forces a company to make decision and help it to overlook at certain challenges.
A good business-plan makes your business successful, and it helps you gauge
opportunities, have a working order and also acquire funds from banks and creditors. A
business plan should include the financial plan, marketing strategy, product you offer,
operations plan and the organization's profile. You should review your business-plan
frequently because business situations change from time to time. Several audiences such as
investors and employees need to read the business plan before deciding on whether to invest
or not when writing your business plan you should ensure that all their interest is put into
consideration. To come up with a good business plan, you have to follow the following steps:
1. Research
Find out more about your product, target market, and your aims, try getting as much
information as possible concerning your business environment, products and competitors.
2. Determine the objective of the plan
A business plan can be regarded as a document explaining more about the business,
its marketing plan, sales, and financial projections. It also serves as a guide for a company to
plan the future avoiding possible problems; if you intend to look for investors, you must
clearly describe your plans and adequately define your objectives (Burns and Dewhurst,
2016).

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3. Come up with a profile for your company
This will include the organization's history, a description of the products offered by
the organization, specific target market, available resources, and method of solving problems
and what differentiates the organization from others. Company profile is posted on the
company's website to attract customers; it could also be used for describing the organization
in the business plan (Blackwell, 2011).
4. File all characteristics of the business
Investors want to invest in businesses that can make them good profits. As a result,
they need to know all about the company including cash flows, industry projections, and
expenses. You should also include the licensing agreements and location strategy (Ward,
2016).
5. Make a strategic marketing plan
A good business plan should consist of a marketing plan with objectives such as
innovation of new products, expanding the market share, developing new markets, increasing
sales, among others. The marketing plan should also contain the allocated fund for achieving
each objective in the project as well as allotted time for each (Hopp, Greene, Honig, Karlsson
& Samuelsson 2018).
6. Ensure it is acceptable depending on the audience
Your business plan has many potential readers such as banks, venture capitalist,
employees and other parties that may be interested in doing business with you. Each reader
has a particular interest, and if you can predict the benefit, you should make sure that they are
well accounted for. For instance, a banker is interested in financial statements, and a venture

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capitalist is more interested in the management of the business and the business concept,
employees will use the plan for recalling objectives. All of this should be put into
consideration when writing a business plan (McKenzie, 2015).
7. Clarify your reasons for caring.
Whoever the audience of your business plan might be, your program should display
that you care and you dedicated to your business by describing your values, how you intend
to solve problems and the learned lessons from mistakes. Include your differences with your
competitors and how you intend to deal with competition. By doing this, you will be
emotionally creating a connection with your audience to support the development of your
company( Brinckmann, and Kim 2015).
A well-written business plan has several benefits to an organization such as it can
acquire funds from lenders. Lenders need proof that after investing in the organization, they
are to make profits, a well-prepared business plan will help them understand how you intend
to run the business and decide if it will be profitable or not. Another benefit is that you can
follow your market, through the thorough research done, you will understand your main
competitors, potential customers and lay proper strategies through your marketing plan. It
also helps in financial management, well-planned expenses help to maintain business
operations, and projections of the cash flow will help you determine if the goals are
achievable and also identifying potential problems that may affect your business (Correll,
Drilling, Dwyer, George, Green, Panjabi, Shaw, Sparks and Strasser, 2016).
Conclusion
In summary, all organizations need a well-written business plan; it has some benefits
such as helping to acquire funds, clearly understanding the market, determining if the goal set
is achievable, guiding the operations of the organizations among many more benefits. Many

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different people may be interested in reading your business plan such as investors,
employees, banks and many others, each of them, have a different interest that must be well
accounted for when writing a business plan.

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References
Blackwell, E., 2011. How to Prepare a Business Plan: Create Your Strategy; Forecast Your
Finances; Produce That Persuasive Plan. Kogan Page Publishers.
Brinckmann, J. and Kim, S.M., 2015. Why we plan: The impact of nascent entrepreneurs'
cognitive characteristics and human capital on business planning. Strategic Entrepreneurship
Journal, 9(2), pp.153-166.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Correll, M.D., Drilling, N., Dwyer, A., George, T.L., Green, A.W., Panjabi, A.O., Pavlacky
Jr, D.C., Quattrini, L., Shaw, A., Sparks, R.A. and Strasser, E.H., 2016. Recommendations
for grassland bird species conservation in the Northern Great Plains (NGP) business plan.
Final report. Bird Conservancy of the Rockies, Brighton, Colorado, USA.
Hopp, C., Greene, F.J., Honig, B., Karlsson, T. and Samuelsson, M., 2018. Revisiting the
influence of institutional forces on the written business plan: a replication study.
Management Review Quarterly, 68(4), pp.361-398.
McKenzie, D., 2015. Identifying and spurring high-growth entrepreneurship: experimental
evidence from a business plan competition. The World Bank.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.