Business Planning

Benefits of a Business Plan

This is a continuation of last week’s discussion and provides insight into some of the benefits derived from developing a business plan.

 

·       A business plan can be used to set targets for new alliances and selected portions of the plan may be shared with key partners.

·       A plan is a useful document to share with professionals that support your business. Sharing your plan with your lawyer, accountant and others may allow them to provide stronger support because they better understand the business through the plan.

·       Planning to sell? A plan helps buyers understand the business, what it is, what it’s worth and why they want to buy.

·       Valuation. A plan facilitates valuation of the business for formal transactions such as divorce, inheritance, estate planning and tax issues.

·       A business plan is needed when starting a new business or if you are looking to create a new business or expand your existing business.

·       Exit Strategy. Finally, if you are planning to exit the business to retire or to change business interest a plan is a vital element for success.

 

As part of my role in the business community I have shared many ideas with owners and facilitating business plan development has been one of those functions for which business owners have contacted me.