Business plan is an essential tool for success

Over the years we have seen people who have brilliant business ideas who throw them in the drain or poorly implement them which led to failure of the initiative. Some of the people either had no idea on how to write a business plan while others did not see the importance of writing one. In this article we are going to seek to try and outline the importance of having a business plan. A business plan is like a traveling plan. One can not embark on a journey without making logistic on how much it will cost for them to reach their intended destination. A business plan is document that outlines the idea of venture an individual seek to pursue. It  outlines the necessary resources that mighty be required for the venture to be successful. 

According to Entrepreneur.com defined a business plan as "a road map that provides directions so a business can plan its future and helps it avoid bumps in the road." This shows that a business plan is a crucial document that help the entrepreneur have direction and help them to keep focus on the attainment of successful implementation of the business idea. In this direction it include the future milestone the organization would seek to achieve thus setting future growth that is intended to be followed in the pursuit of growing the business idea.

We have already pointed out that it gives organisation direction, which helps in the identifying the necessary resources that will be required for the venture to grow. Thus it will assist the entrepreneur to avoid either over stuffing or under sourcing of materials necessary for the operations of the entity. A business plan clearly shows the entrepreneur of the skills that the entity will require initially together with what the organization already have before it commences operation. The skills that will be required is to complement the one the founder have with others so that organizational success can be attained.

It also shows the potential threats the institution would face that create amply time for the group to be prepared for the occurrence of the threat. Chapman S argued that a business plan assist the entrepreneur in convincing others to join him or her as the individual seek to pursue the idea. Thus the document will contain information that clearly outline the vision, goals, objective, market and objective that will have been identified. As a result it will act as tool that the individual will use to source for investors who would love to see the idea grow into a full fleshed business. Most small business do not have business plans because they were born out of opportunity but lacks the vision that they seek to achieve. With this in mind the entrepreneur will not be ready for any changes that might occur in the industry and will not see the need to reinvest profit to facilitate growth.