The importance of having a plan
Give your business or life the right foundation
SHAREE ALUKO
In the last quarter of the year, many people think about starting a new business, expanding their current business, getting new business deals or setting personal goals in the upcoming year. With that in mind, you should be planning for those initiatives now — start writing your business plans, strategic plans, business proposals, or personal vision boards.
The written plan is a foundational document and a game changer for your business or life. You cannot build a house without a foundation, so why would you want to build a business or your dream life without a plan? According to Benjamin Franklin, “If you fail to plan, you plan to fail.”
What exactly is a plan?
A plan is a roadmap that gives the needed focus and direction to achieve business or personal goals, profitability, and sustainability. It’s also a critical step for any entrepreneur looking to start or grow their business or someone working towards a specific goal for several reasons:
Clarifies vision and direction: A plan helps you to clearly define your ideas by getting them out of your head and on paper, which allows you to set clear direction for your company or your life. It is an opportunity to thoroughly think about all areas of the business or life and make you accountable. It increases your chance of carrying out your plans and bringing your goals to a reality.
Attracts investors and financing: Potential investors and lenders will want to see a detailed plan before committing any funds to your venture. A well-crafted business plan demonstrates that you have researched your market, understand your competition, and have a solid strategy for achieving profitability. This can significantly increase your chances of securing the necessary funding.
Identifies potential challenges: The process of conducting extensive research and analysis can identify potential challenges and risks that you or your business may face, allowing you to develop strategies to manage these risks before they become problematic.
Sets milestones and goals: A plan outlines specific, measurable goals and the steps needed to achieve them. It helps you to stay focused and on track. You can monitor your progress and make necessary adjustments to stay aligned with your objectives.
Improves decision making: With a plan in place, you have a reference point for making informed decisions. Whether you are considering a new marketing campaign, expanding your product line, exploring new markets or changing your life, your plan can provide valuable insights and data to guide your choices.
Enhances communication: This document can serve as a communication tool. It ensures that everyone involved in the planning process understands the company or individual goals, strategies, and expectations. This can lead to better collaboration and a more cohesive effort toward achieving your business or personal objectives.
Rental, visa, and business applications: You may require a plan to rent a commercial building, apply for certain business licenses or permits, and to immigrate under business immigration programs.
A well-prepared plan is not just a document for securing funding; it is a vital tool for guiding you or your business toward long-term success. By providing a clear vision, identifying potential challenges, setting achievable goals, and improving decision-making, a plan lays the foundation for a thriving individual or enterprise. In a nutshell, the plan analyzes the overall business or personal opportunity and is based on various projections spanning over a longer term. It should be the starting point for you or any business and every business or individual should have one. A plan is not only essential for business, but it is also instrumental for achieving all personal goals and objectives.
Should you write your own plan?
It would save money to do your own plan. However, if you don’t have the time or expertise and can afford to hire the services of a professional, it is advisable to do so. Remember that if you hire a professional, the results are better if it is a collaborative effort. You are the expert in your business or personal life, which means you need to provide the required information. Your consultant is there to guide you and use their expertise to help you think critically about your business or your life, but it is your plan. The plan may need changes a few times until it reflects your unique business, situation, and goals.