The Importance of Having a Small Business Plan
Business Plan Basics
When starting a small business, the most important step is to create a solid, workable business plan. A business plan is an overall strategy that will help guide you during the start-up process and beyond. The business plan will help carry the business through unexpected circumstances and will steer the organization toward its goals.
A solid business plan should include:
- A thorough statement of the goals and aims of the company
- Specific strategies for accomplishing those goals
- Budget and financing details (especially concerning small business loans or grants)
- The role and responsibility of members, leaders, and directors
- Allocation of business assets
- Steps for preparing for the transfer or succession of the business
Having a business plan may also help when forming other documents, such as employee policies, hiring procedures, business-to-business dealings, and other interactions. The business plan may be referenced as a guide which will help keep business projects in line with the company’s overall theme and purpose.
What Happens When You Don’t Have a Business Plan
Some prospective business owners or managers may have the impression that a business plan isn’t needed, or that you can just “wing it” for certain issues. However, failing to have a business plan in place can be very risky in the long run. For instance, lack of business plans can lead to increased liability when it comes to issues like hiring policies, business contracts, and wage/hour adjustments. Proper business plans can also help reduce business non-compliance issues.
Seeking Legal Help
If you need help creating a business plan, you may wish to consult with a business lawyer for advice. A lawyer can help you identify issues that might be of concern with your business in the future, and can help you plan accordingly.
By Jose Rivera, Senior Staff Writer, LegalMatch.com
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