Wed 04 Feb 2015 | By:

7 Reasons Every Connecticut Entrepreneur Needs a Business Plan

You Need to Write a Business Plan

Starting a business in Connecticut needs a whole lot of work, it’s challenging and time-consuming all at the same time. In the middle of all the work, you’ll get lost and find everything so confusing, take time to pause and assess what is lacking.

Everything that requires time, effort, money and patience needs to have a game plan. If you want to know the secret on how to start a business in Connecticut on the right foot, the simple answer to this is to write a business plan.

Today, few entrepreneurs see the importance of having a business plan. The majority of modern-day business owners find it as an outdated and useless piece of document. With all the successful businesses that started even without using a business plan, it’s no wonder that many don’t believe in it as an essential tool when starting a Connecticut startup.

However, a business plan is still the best way to start any kind of business. Although it’s not really a mandatory requirement, it can do a lot of good things for your business. By writing a business plan, you’ll be able to create a clear path, a direction of where you are heading. You’ll be able to develop strategies to boost your chances of business success.

If you’re not fully convinced on the reasons why you need to write a business plan, let me show you 7 convincing reasons, here they are!

 

1) Allows you to set realistic and achievable business goals.

“A goal without a plan is just a wish.” ~ Antoine de Saint-Exupery, French Writer

Do you agree with this quote? I do. You want to start a business, you plan to do this and that … but do you really have a specific goal in mind? It isn’t even enough to think about it, you need to write them down and write a detailed plan for each of them – this is the only way that you can transform them into reality.

If you have them on paper, you’ll be able to check on them and keep track of each one. In this way, you’ll have full focus and concentration in achieving your business objectives.

Jotting down your business goals will not only be good for you and your business, it will also serve as a reminder to your employees and team members, business partners, vendors and investors that you are 100% committed in achieving them and you need their help to do so.

 

2) Helps you in financial management.

This is one of the best advantages of having a business plan when you start your Connecticut startup. First of all, cash flow is one of the most important aspects when running a business, you need to keep a close eye at your inflow and outflow, which is why you need to have knowledge on financial management.

Writing a business plan will give you just the right amount of information so you can manage your business’s finances well. While you make your business plan, you’ll be able to study and analyze your numbers – your profit and loss, your intended budget, financial assumptions and a lot more.

Having a business plan will also enable you to create possible solutions in situations where you don’t meet your target projected income.

 

3) Provides you a realistic measurement of success.

Sometimes, because of our strong will to succeed, we become unrealistic and blinded by the measures of success, after all, entrepreneurs are still human. We tend to convince ourselves that we’ll be able to make a sum of profit after a year or two, or, we’ll be able to get our investments and capital back within a few months time. However, what you need to understand is that it doesn’t work this way.

The majority of small businesses find it hard to take off during the initial stages of launching. Many fail to even make it, so you can’t create assumptions based on your expectations alone. When you write a business plan, you’ll be able to see your financial status and business standing everyday, so you’ll have an idea how close or how far you are. With this, you’ll be able to face reality as it is.

Also, by having a business, you’ll be able to continuously evaluate completed goals, the things that work out best for your business and what doesn’t. You can easily identify miscalculations and create necessary steps to change your course of action.

 

4) Serves as a guideline when hiring employees.

Working with the wrong people may just be one of the greatest mistakes you can ever make. Your business idea may be feasible, you may be smart and intelligent, or you may be a competent leader, but if you work with the wrong people, everything that you’ve worked so hard for will be put to waste.

Your business plan will outline your objectives and goals and when you have this, you’ll be able to determine the kind of professionals that you need. You may want to focus on marketing, so you can find someone who has this as a skillset. Or, you may want to keep a close eye at your finances, so you may want to look for someone who is an expert in marketing.

Working with efficient, productive, qualified and reliable people can make a huge difference, it will be easier to achieve your business goals because you and your employees are on the same page.

 

5) Shows you how to sell your products and services.

Marketing is an important part of running a business; without proper marketing strategies, you will not be able to earn profit and your business will eventually fail. Excellent marketing strategy will always yield good business results.

By writing a business plan, you’ll be able to study your target market, observe consumer behavior, predict latest trends and create a report of supply and demand for your products and services.

 

6) Enables you to make better business decisions.

Instead of making decisions along the way, which by the way, is an inefficient way when managing a business, having a business plan will allow you to make sensible and timely decisions based on facts alone.

While making decisions on the spur of the moment can gain good results like well-thought of decisions, it has a higher risk of failure. I’ve always believed that creating decisions along the way is an inefficient way of doing business. You’ve worked so hard to build your business, but you rely on reckless decision making – it doesn’t make sense.

When starting a business, everything has to planned and well-thought of. You can’t rely on assumptions and predictions, you have to create decisions based on accurate, detailed and reliable facts.

 

7) Looking for financing is easier.

We can’t deny that the reason why the majority of entrepreneurs still write a business plan is because of financing. We need a document to present to investors, so they’ll be convinced to invest in our business venture.

While you’re perfecting the financial section of your Connecticut small business (which is the section that most investors directly examine), why not make the other sections of your business plan as relevant as your financial section?Who knows investors might want to take a look at other parts of your plan, it’s good to always be ready.

Writing a business plan for your Colorado small business is a commitment that you have to take seriously. It entails hard work; you need to research, study and analyze so many things to come up with a solid and accurate business plan.

Our business ideas are always perfect in our eyes – they are free from flaws or competition, however, fact is, no business or idea is perfect and even when you have a business plan with you, it’s still not an assurance that you’ll eventually succeed. One thing that a business plan can promise you however, is a smooth sailing startup process. And even if you fail at the end of the day, at least a business plan made your road less rough and bumpy.

If you plan to write a business plan, let me tell you this straight – it’s definitely not easy. Good news is, there are so many business plan softwares in the market that can truly help you write an industry-specific business plan for your startup. If you use a business plan software, you’ll still be able to stay hands on – they will just provide you with the best tools to hasten the process of writing one.

But as I said, there are numerous ones offered online and it can be difficult to determine which one is the best business plan software for you. I recommend that you check out each one of them, visit their sites, read client feedbacks, testimonials and reviews and try to use their services by taking advantage of their free trials. Take control of your Connecticut business and its future by making a business plan now!

About Ryan James

Half hardworking hermit, half avid adventurer, Ryan founded Startup Savant to simplify entrepreneurship and pay it forward by donating a portion of all revenue to support children's education via DonorsChoose.org.