Tue 01 Sep 2015 | By:

7 Reasons Every Arkansas Entrepreneur Needs a Business Plan

You Need to Write a Business Plan

Are you planning to write a business plan for your Arkansas startup? If you are, that’s definitely good news! It’s not a mandatory requirement in the state of Arkansas, but it’s an advantage to have one. Starting a business in Arkansas needs careful preparation and making a business plan is the best way to increase your chances of success.

However, if you’re just trying to write a business plan for the sake of presenting a document to investors and bank loan officers, the whole purpose of making one is defeated.

One of the most common questions that I’ve heard so far is how to start a business in Arkansas and this is a fairly easy question to answer, because for me, having a business plan will set you on the right foot.

If you’re still not convinced why your Arkansas small business needs a business plan, here are 7 reasons to help you realize its importance.


1) To Show That You’re 100% Committed In Building Your Arkansas Startup.

It’s easy to say that you’re starting a business in Arkansas, but your actions will show how serious and committed you are. Although having a business plan is not the primary defining factor for this, writing one will definitely show your employees, business partners and investors just how important the business venture is to you.

Most of all, you will be able to prove to yourself that you’re determined to make things happen – that you’re making steps to build and develop your Arkansas small business into a successful one.


2) To Gain A Deeper Understanding Of The Market And Your Competition.

Understanding your market is the first thing that you have to study if you want to take your Arkansas startup to the next level. Creating an in-depth analysis of your target market and consumer behavior is essential so that you’ll be able to determine how to position the products or services you’re offering and how you can effectively deal with sudden changes.

Along with this, you’ll also be able to analyze your competition and their advantage or disadvantage over you. This will allow you to create marketing strategies that will help you standout.


3) To Find Out If Your Business Idea is Feasible.

You can’t synthesize everything in your head, so you need to document by writing a business plan. In the process of writing your business plan, you’ll be able to determine if it’s viable or not.

For us, our business ideas are always great and we have the highest hopes that it’ll work out  – but it’s only when you study and analyze them closely that you learn how impossible they are or what an opportunity you’ll be able to create from your business idea.

If you want to judge your business venture according to facts and proven data, you need to diligently write your business plan.


4) To Understand How You’re Going To Generate Revenue.

Although you shouldn’t be expecting any revenue for the first few years of starting your Arkansas startup, you need to analyze this aspect of your business early on. The most basic question that you need to answer is, “how will my business generate money?”

For you to be able to answer this question, you need to create a revenue model. If you answer this question, you’re almost good to go, the only thing left is to see if your revenue model is right or wrong – but I doubt it will be. You will only be able to know all these things if you write a business plan.


5) To Identify How Much Money You Need To Start Your Business.

Forget articles saying that you can build your business without any money, reality is, you do. It’s not a good idea to create a rough estimate, the best thing to do is to study how much capital your Arkansas small business needs.

By writing a business plan, you’ll be able to raise appropriate funding for your startup. You’ll also be able to distribute your financial resources properly, prioritizing aspects of your business that need the most attention.


6) To Attract The Best Talents To Be Part Of Your Team.

Your workforce will be a huge part in the success or failure of your Arkansas small business and how do you exactly attract talented people into your company? By having a concrete plan for your business.

If you have a solid and professional business plan, it will cement your place in the business industry, adding to your reputation and credibility. Once you are able to build all these, retaining competent and talented professionals won’t be too hard. A sound idea and excellent business objectives are enough to gain the interest of your employees and management team.


7) To Adjust To Changing Situations.

Economic downturns are inevitable and you need to adapt to the changing times if you want to stay afloat in the industry. Having an existing plan is an advantage because you can always rewrite and make improvements, whereas if you have nothing, you’ll be scrambling to come up with something.

After reading this article, I’m sure that you’ve realized something. I hope that you don’t join in the bandwagon of entrepreneurs who think that writing a business plan is an outdated method.

The lack of knowledge and experience in making a business plan doesn’t even excuse you from writing one because there are so many options that you can choose from to assist you – one of them is using a business plan software.

Creating a business plan is made easy with the use of business plan software options, they have all the time-saving tools that you need to make an industry specific roadmap for your business. If you’re looking for the best business plan software, I highly recommend that you use LivePlan – you won’t have a single regret using it!

About Liesha Petrovich

Liesha is a small business owner of 20 years, host of Startup Savant, the owner of a karate dojo in Maine, and creator of Work Mobly. During free time she's with her family and working on a Doctorate in Entrepreneurship.