Business Plans – Fail to Prepare, Prepare to Fail

April 5, 2015 by Andy Crow

Business Plans – Fail to Prepare, Prepare to Fail

When starting a new business it is easy to become narrow minded, and immediately focus on achieving sales and profits. However, in order to attain both of these, there needs to be a business plan. It seems that many small businesses are forgetting the importance of goal setting and forecasting, consequently leading to a slower rate of growth.

A recent survey by Barclays found that 25% of start-ups had an informal business plan, and 23% didn’t have one at all. By not including a plan from the outset when starting a business, this instantly gives the firm a lack of direction, meaning that productive efficiency will be reduced, as there is no target for employees to work towards. As a result, the rate of progression to achieving sales and profits will be stunted and so growth prospects will not be maximised.

Acquiring a business plan also reaps benefits such as motivation. By applying short and long-term goals this gives employees a focal point to work towards, increasing their motivation as they feel a sense of self-worth on the completion of the targets. Furthermore, this motivation will increase efficiency and speed up the expansion, which is so vital for any business.

Business advisery is a method that is often used to quicken the process of composing a formal, specific business plan. With the advisers analysing the firm inside out, it allows them to gain an understanding of what is, and what isn’t achievable in the short and long-term future for the company. This allows them to give advice on current goals and suggest adjustments that should be made in order to gain realistic targets that provide direction towards the first stages of growth for your company.

Chorus Business Advisers can help you make the right choices for your business and help you achieve the goals that you work hard to achieve. Please call 0845 8671263 or email info@chorusadvisers.co.uk for more info.