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Know Where You're Going with a Business Plan

1/22/2013

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Any small business owner will tell you that starting your own business is a pretty wild journey – and it’s pretty easy to get lost if you don’t take the time to plan ahead. If you want to know how to reach your destination, you need a business plan. Many people make the mistake of thinking that business plans are only necessary to present to potential investors, however smart small business owners find that they serve a much broader purpose. A good business plan outlines your mission statement, clearly lists your goals, and helps you get your entire operation on the same page.

There’s no better time than the start of a new year to set goals for your business. If you don’t already have your business plan written, there are a large number of guides and templates available online. The US Small Business Association provides a detailed guide of each section that makes up a business plan on their website sba.gov: How to Write a Business Plan. You can refer back to your business plan throughout the year as a way to check-in on your goals. When you’re preparing your plan, write in milestones that occur along the way to your goal, such as launching a new website or gaining X number of followers on your social media networks. When you do show potential investors your business plan they will be able to see tangible evidence that your business is moving towards its goals.

Writing a business plan is also good for your customers. Part of writing a successful business plan is performing market analysis. This not only helps you serve your customers better through what you find in demographics research, but it also helps you stand out by providing you an opportunity to evaluate the competitors in your field and offering something they do not.

So take the time to figure out where your business is going and how it’s going to get there. You’ll always know right where you are with your business plan as your guide.

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