How a business plan can help your business flourish in 2021

Nobody can dispute the fact that 2020 has been a challenging year for business owners, and for many of us it has been a battle to stay afloat.

But just because 2020 has been a bit of a disaster for business, doesn’t mean 2021 has to be the same. In fact, it’s the ideal time for businesses of all sizes to evaluate where they are and what opportunities they want to pursue in the future. And how do you do that? By simply putting together a business plan.

Read on to find out how a business plan could help your business flourish next year. But first, we take a look at…

Why you should write a business plan

Not sure you need a business plan? Well think of it as a road map; yes, it’s possible to travel without one, but the chances are you will get lost along the way.

Your business plan is basically a written document that helps you plan out exactly how you’re going to turn your vision into a successful business.

It confirms that your business idea makes sound business sense, helps you plan out the steps you need to take to achieve your goals while also providing you with useful financial forecasts, resource requirements and a timeline for anticipated results.

And don’t make the mistake of thinking that business plans are just for entrepreneurs about to launch a new business. Businesses change over time, so if you are planning to grow, interested in raising additional capital for expanding the business or simply want to take stock of where you are now, write a business plan.

The following are key ways in which a business plan can help your business.

Establishes long-term objectives for your business

You can’t have a good business plan if you don’t have clearly defined management objectives, which establish what you want your business to achieve by when.

By setting clear goals, you can then use your business plan as a reference tool to keep you on track with sales targets and operational milestones. When used properly and consulted regularly, it can help you measure and manage what you’re working so hard to create.

A robust business plan will also provide the foundations to help you grow your business and make key decisions at the right time. Not sure where to start? As local accountants, we love nothing more than helping small businesses develop a plan that’s geared to your aspirations as a way to guide growth. If you want to find out more, download our Fact Sheet with further hints and tips on developing a business plan to help you make brilliant business decisions.

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Creates a marketing plan

Who is your target market? Why should they buy from you? How are you going to reach them?

These are just some of the questions that a marketing strategy will address, as well as providing you with an invaluable insight into your competitors and an in-depth market analysis.

A good marketing plan is essential if you want to get your sales and marketing right first time. After all there is no point advertising on social media if it’s not a channel your potential customers use. And it will also give you invaluable information into whether and when you should release new products or services.

Enables you to seek investment

Once you have a business plan in place, you’ll have a clear idea of your financial projections and whether you need an injection of cash to really help your business fly.

The great thing about a business plan is that it answers questions about profitability and revenue generation, so can make the difference between whether or not someone decides to invest and, crucially, how much they are willing to put into your business.

And don’t think that potential investors have to be venture capitalists. It could be you just need a line of credit from your bank for a set period of time. As experienced local accountants, we are happy to advise you on what type of investment would be right for your business.

Helps you decide whether you need new assets

Committing resources to capital improvements and investments is never an easy decision for budget-conscious business owners. But a business plan can bring clarity and help you decide if it’s feasible to take on additional office or workspace or whether you need to buy new office equipment, such as computers.

Identifies any skill gaps in your business

For a business to succeed, attracting talented employees is critical, but first of all you need to identify any skill gaps in your business.

A business plan will help you identify any gaps and also whether outsourcing would be a more appropriate solution than hiring a new member of staff.

Business growth advice from your local accountants in Aylesbury

If you’re not sure where to start with your business planning, why not give us a call. At Palmers Business Support we’ve helped many business owners put a business plan in place which not only allows them to grow their business, but also have the life they want.

Please get in touch so that we can help create the business you want now and help you make brilliant business decisions for your future. Let’s make 2021 a year to remember!