Thu 28 May 2015 | By:

7 Reasons Every Colorado Entrepreneur Needs a Business Plan

You Need to Write a Business Plan

Writing business plan in Colorado is complicated and time-consuming if you have never done it before. It’s definitely a serious task that you have to prepare for and plan ahead.

Before you even think of starting one, you need to take time and write a business plan, so the process of building your Colorado startup is smooth sailing and glitch-free.

A business plan is not an outdated document, and although some entrepreneurs today no longer regard it as an essential tool to start a business, creating one can make a huge difference.

If done accurately, it can be a source of reference for any business decisions you make in the future and will save you many headaches potential headaches later on. If you’re still not sold on the idea of writing a business plan, here are 7 convincing reasons to show you just how important a business plan is for your Colorado small business.


1) Set Specific Goals And Objectives

You can definitely make goals and objectives in your head even before you start building your Colorado small business, however, it would be best to write them on paper. If you do this, you’ll be able to keep track and remain focused on achieving them.

Setting specific goals and objectives is important; all your business actions will be based upon them and as a result, you’ll be able to move and execute your plans systematically.

Having them written down is also good for you – so that you’ll always be reminded of what you need to do, it’s also important for your employees/team as well as your business partners, because by having a business plan, you’re assured that you are all on the same page.


2) Aids In Successful Financial Management

Cashflow is the backbone of your Colorado startup, it’s essential that you know every aspect of financial management so that you’ll be able to properly handle the inflow and outflow of money within your company.

When you write a business plan, you’ll be able to study and analyze certain aspects of your business’s finances. First of all, you’ll know how much budget you’ll set, your projected profit and even your breakeven point. Writing a business plan will also allow you to create solutions if your projected income is not met.


3) Gives You A Concrete And Realistic Measure Of Success

This is one of the most important reasons why you need to make a business plan for your Colorado business. Many entrepreneurs are unrealistic when it comes to predicting the success of their business. They expect to reach their business objectives and earn profit within a year of doing business, when in fact this is not the case.

Most businesses find it difficult to take off during the first few years of operations and it may take long to fully experience the return of investments or profit. If you create a business plan, you’ll be able to know why and you’ll avoid making assumptions and baseless expectations.

Your business plan will also serve as your reference, you can review and examine it every year and see what goals have been achieved, what works and what doesn’t. You’ll also be able to spot miscalculations and you can take steps to change your course and procedures.


4) Provides You With A Guideline On Hiring Employees

Knowing what your business objectives are, you’ll also be able to match the skillset of your employees based on what you need done. For instance, you’re trying to focus on excellent marketing for your business, thus, you’ll also look for someone who has years of experience and enough knowledge in this field of work.

Hiring the wrong people will defeat your own business goals. Unqualified and inefficient people will slow down your productivity, hindering you from achieving your objectives in the best possible time.


5) Provides You A Detailed View On How To Sell Products And Services

Marketing is crucial when doing business, without having a specific plan to sell products or services, you’ll not be able to gain profit and you’ll end up closing your Colorado small business.

It is essential that you prepare appropriate marketing strategies for what you’re offering. Determine your target market, observe consumer behavior and map the pattern of demand for your products/services.


6) Allows You To Create 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.

In business, you simply can’t say “que sera, sera”, because doing so will put your business in danger. Make solid decisions by having an accurate, detailed and well-researched plan for your business.


7) Looking For Investors Is Made Easy

This is the number one reason why many Colorado entrepreneurs write a business plan. But if you’ve noticed, this is the last on my list because I believe that a business plan has a greater purpose beyond this.

Although a business plan is indeed helpful in looking for investors, lenders and financial institutions who will support your Colorado business, you have to think beyond this. If you’re looking for financial resources while drafting a business plan, while you’re at it, why not equally give attention to every aspect of your plan?

Many investors don’t just skip everything and go directly to the financial aspect of your plan, they’ll also read every bit of information you place in other sections so you need to write everything in the best way possible.


Wrapping Up on Writing a Business Plan

Making a business plan for your Colorado startup is a labor of love. You need to do a lot of writing, research and analysis to make it one solid and professional business plan. If done right, your business plan can anticipate potential business problems, thus, you can create contingency plans to combat those problems as they come.

No business is perfect, even when you write a business plan, it’s not an assurance that things will not get bumpy, however, if you have one, issues and problems that may arise later on are easier to solve and settled.

Writing a business plan is not an easy thing to. However, with the help of business plan softwares, the task of writing a solid business plan has now become simple. A business plan software has all the right time-saving and efficient tools that you need to kickstart your game plan. The only thing left to do is to choose the best business plan software for your Colorado small business.

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