Not all businesses start with a written plan and this doesn't mean they would not be successful. But putting some thought into how you want to structure your business and where you'd like it to go can only help you in the long run.

1. 5 advantages of
having a business plan
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2. “A good plan is like a road map: it shows
the final destination and usually the best
way to get there.” H. Stanely Judd

3. 1
It gives you a
better definition
of your business.
• You might start out with an idea and have a
clear picture in your head of how you’d like this
idea to translate into practice and into the real
world. But it’s not until you go through the
process of writing up your business plan that
you get a good grasp of what your business will
entail. Don’t get this wrong, paper doesn’t
always match reality either but it’s the fact that
a business plan forces you to think of matters
that you may had not considered before.

4. 2
It points out the
risks you might
have to deal with.
• Having to conduct research on the industry
you’ll be operating in, entry barriers,
competitors and customers usually leads to
discovering what can go wrong. But that’s not a
bad thing. Because if you know what to expect,
you can plan on how to avoid risks or at least
what to do when something goes wrong.

5. 3
It helps if you
want to get
funding.
• Investors need to see a business plan before
deciding whether to invest or not. Good ideas
are considered for funding only if they’re
backed by a robust business plan, covering all
main points.

6. 4
It focuses your
business.
• Having a better understanding of the industry
you’re operating in can clarify what your
position in the market should be and what sets
you apart from the competition. This in turn
allows you to focus on your strengths and
create a better product/service.

7. 5
It keeps you on
track and gives
you the tools to
monitor
progress.
• You will have to set targets, design strategies on
how to achieve these targets and financially
plan for the required actions. This process will
come in handy when you assess your overall
business operations, as it will clearly indicate
whether you are achieving what you have set
out to do or whether you need to review your
strategy.