The Importance of Writing a Business Plan for your Company's Growth

The initial efforts of a company when building a company from the ground up is focused a lot on operations – making sure that your product or service offering is constantly available and that your service delivery process helps with your operational efficiency. 

However, as your company continues to grow, you begin shifting from just making sure the day-to-day operations are running smoothly to a more futuristic mindset – looking into ways on how you can assure your company’s growth and longevity.  

Read: 5 Tips for a More Effective Financial Planning and Forecasting  

With this, having a business plan can help greatly with your growth initiatives. Your vision about your company’s goals now has a definite form and a business plan will tell you how to get there. 

Here are some of the reasons why your business needs such a plan: 

Benefits of Having a Business Plan 
 

To Set Clear Company Goals  

Your business plan is basically your roadmap as it gives your business the direction you need it to have. Through a business plan, it will be easier for you to gear your business towards the objectives you have set and likewise, to improve your annual profits successfully. 
 

To Understand Your Market 

Putting up a business and having an initial client network in mind does not mean you are bound to serve these clients permanently. More often than not, your client network will expand. As a business owner, having a business plan will be vital in understanding the needs of your market and addressing these needs using innovative tools that are at par with modern business standards. 
 

To Organize your Inventory 

Managing your inventory speaks volumes of how well you are utilizing your working capital. In this sense, it is important to consider your cashflow and the raw products and manpower required to keep your business running smoothly. Using a business plan to map out your inventory is an ideal practice because it helps you keep tabs on your business supplies in the most efficient way possible. 
 

To Anticipate Risks and Vulnerabilities 

Companies – especially ones that are just starting usually deal with risks and vulnerabilities on a frequent basis. That said, it is important for you to know how to deal with these issues. There are many ways to pursue risk mitigation but anticipating such pitfalls through a well-written business plan tops the list.   
 

To Attract Investors and Stakeholders 

When you start thinking about expansions, attracting investors is admittedly one of your priorities. The ideal business plan has a financial blueprint section which mostly tackles your current financial position and the target revenues of your enterprise. This accurate report of your critical business numbers will urge your potential investors to give your investment proposal a definite ‘yes’. 

In the end, most companies will attest to the fact that having a business plan significantly puts their business at a strategic place and helps with how they plan for their company’s future. The reality is, a well-written business plan can organize your company’s vision, aligning everyone in your team to work towards your common goal.  

Read Next: The Backbone of a Corporation: Strategic Financial Management  

Need help in Managing your Finances?  

If you feel that you need more assistance in getting your finances in order as a CFO, this is where we come in! With our trained experts, we can help you take the next step in managing your finances and plan for the success and longevity of your company.  

You can also grab a copy of our whitepaper Outsourcing: How to Make it Work to learn how we can make outsourcing engagement work for your growing business.   

This post was first published on 29 January 2015 and edited 10 May 2024. Edited by: Aly Tagamolila