5 Reasons every entrepreneur needs a business plan.

A business plan is a written document describing a business strategy and objectives and how it plans to achieve its goals. Business plans are like a road map to guide entrepreneurs, without which, it is easy to get lost or distracted in the maze of many strategies.

Although they are usually essential for start-ups, every business should have a working business plan that can be reviewed and updated periodically to track achievement and progress.

Here are 5 reasons every business should have a working and adaptable plan.

1. It helps make critical decisions ahead of time: Entrepreneurship is an endless circle of decision-making and crisis management. A business plan usually has detailed information about the marketing, financial, and operational stand-points ahead of time. To prevent having wrong choices: a guideline — a business plan, has already taken the time to think it through.
2. To prove the viability of the business: Passion is a fundamental motivator for every business, but it is not enough to run the daily flow of operations. Every entrepreneur needs a written document to turn vision into a successful business. A crucial aspect of a business plan is market research, which can offer a deep insight into your competitors, target audiences, and your chosen industry.
3. To stay accountable to your long-term vision: Having a business plan makes the objectives and strategies more intentional and consequential. They can also help you stay committed to your vision and gain insights into what is working and what is not.
4. To attract good investors: If you plan to venture into capitalists or get budgetary loans from a bank, then you’ll need a good and detailed business plan. Anyone willing to invest a huge amount of money into your business will also like to know its chance of success.
5. For more insights into the business: Preparing a business plan will enable the entrepreneurs to have a clear understanding of the goals and objectives. And it requires them to ask a lot of reasonable questions and come up with well-researched and insightful answers.

What other importance of business plan do you know?