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15 Reasons Why You Need a Business Plan in 2024

Posted august 5, 2024 by noah parsons.

Imagine you’re going on a road trip. You know your final destination, but you haven’t figured out how to get there. 

While it might be fun to start driving and figure things out as you go, your trip will likely take longer than expected and end up costing more. But, if you take the time to look at a map and chart the best way to get to your destination—you’ll arrive on time and on budget. 

Planning for your business isn’t much different, which is why a business plan is so important to your continued success.

What is the purpose of a business plan? 

The primary purpose of a business plan is to help you figure out where you want to go with your business and how you will get there. Writing a business plan helps you set your direction and determine a winning strategy. A solid business plan will set your business up for success and help you build an unbeatable company.

If you start off without a plan, you may go down some interesting detours, but you’re unlikely to grow quickly or stick to your budget.

15 reasons why you need a business plan

“Creating a road map for my business is all well and good, but do I really need a business plan? I’d rather just get started.”

If you’re still thinking like this and decide to skip writing a business plan, you’re making a big mistake and setting yourself up to fail. Even if your business survives, without a plan, you’ll miss valuable growth opportunities and never truly be in control.

Still not convinced? Here are the critical reasons why a business plan is important for small businesses. 

1. You’re more likely to start

Documenting your business idea makes it more official. It takes rough ideas and turns them into the making of a real business. 

According to a study by the Harvard Business Review , entrepreneurs who write formal plans are 16% more likely to achieve viability than those who don’t.

Even if it’s just notes about your potential business, writing things down will make you more likely to proceed with your business. Without a plan, you can’t prove to yourself, partners, mentors, or investors that you’re serious about starting.

2. Reduce potential risks

Writing a business plan takes some of the risk out of starting a business. It helps you think through every facet of your business to determine if it can truly be viable. 

• Does your solution fit the market? Are your startup or operational costs manageable?
• Will your proposed business model actually generate sales?
• What sort of milestones would you need to hit to achieve profitability?

Your business plan can answer these startup questions .

For those already running a business, writing a plan can help you better manage ongoing risk. 

• Should you bring on a new employee?
• What does cash flow look like for your next month, quarter, or even year?
• Will you meet your milestones or do you need to change your focus?

Keep your plan up to date, review it regularly and you can easily answer these growth questions and mitigate risk.

3. Test a new business idea and prove it’s viable

When you have a new business idea, it helps to spend time thinking through all the details. 

A business plan will help you think about your:

• Target market
• How much money you’ll need to launch
• How your idea will actually work before you spend any real money

A business plan will also help you easily share your idea with other people to get input and feedback before you get started. 

There’s no need to create a detailed business plan either. 

Instead, I recommend using a one-page business plan to quickly test your ideas and determine if you have a viable business. 

4. Understand your market and build a marketing plan

No matter how good your idea is, you have to figure out who your ideal customers are and how you will get the word out to them. 

That’s where a marketing plan comes in. It can be an indispensable tool to figure out how you get your first customers as well as your thousandth customer. It can start as a simple bulleted list of potential marketing channels that expands in detail as you need it.

5. Build a better budget and a financial forecast

Without a business plan, it’s impossible to know how much money it will cost to start and run a business. You don’t just need money for your initial purchases; you need enough cash in the bank to maintain your cash runway and keep your business afloat while you get fully up and running.

When you plan, you’ll need to create your expense budget , set sales goals, and identify how much cash is needed to keep your doors open, purchase inventory, and more. 

The beauty of incorporating forecasts into your business plan is that you don’t need exact numbers to start. You can work with general assumptions and compare against competitive benchmarks to set a baseline for your business. 

As you operate and collect financial data, you can revisit your business plan and update your forecasts to generate a more accurate picture of your business’s future.

6. Attract investors and get funding

Sharing your business idea with investors requires a business plan. 

Investors may never actually ask for your full business plan, but they will certainly ask you questions that you’ll only be able to answer if you’ve taken the time to write a plan. 

At the very least, they’ll want to see your financial forecasts, so you should be prepared for this. If you pitch your business to investors, having a business plan makes it much easier to translate the right information into a pitch deck. 

In short, you’ll have all of the right information ready and available to show why your business is worth investing in.

7. Plan for different scenarios

Things rarely actually go to plan. The world is always changing, customer tastes change, and new competitors arrive. 

Having a plan allows you to experiment with different scenarios to see how changes to your business will impact your forecasts, budgets, profitability, and cash flow.

Without a business plan, you’ll be reacting blindly with no way to track if your decisions are making a real impact.

8. Attract employees

Especially if you’re a young startup company, attracting employees can be hard. Without a proven track record, why should someone take a risk to work for you? 

Having a business plan can help solve that problem. Your plan can help prospective employees understand your business strategy and growth plans so that they can feel confident joining your team. It’s also incredibly useful in determining when and if it’s feasible for you to hire more employees . 

9. Get your team on the same page

A great business strategy can only be successful if your team understands it. By documenting your strategy with a business plan, you can easily get everyone on the same page and working towards the same goals. 

It’s even better if you regularly review your plan with members of your team. Have everyone revisit your core strategy, analyze it, and explore how it impacts individual and team goals .

10. Manage your business better 

A business plan is all about setting goals for your company — both financial goals and milestones you hope to accomplish. 

When you use your business plan to manage your business, you’ll see which parts of your strategy are working and which aren’t. 

For example, you may have invested in new marketing efforts to sell one of your products, but that strategy just isn’t working out. With a business plan in hand, you’ll be able to see what’s going to plan and where you need to adjust your strategy, pivoting to new opportunities that will drive profitability.

Regular business plan reviews , ideally monthly, will help you build a strong, resilient business.

11. Effectively navigate a crisis

Having a business plan not only helps you create a roadmap for your business but also helps you navigate unforeseen events. Large-scale economic downturns, supply shortages, payment delays, cash flow problems, and any number of other issues are bound to pop up. But by leveraging your business plan, you can be prepared to face each crisis head-on.

A plan helps you assess your current situation, determine how the crisis will alter your plan, and explore what it will take to recover. 

With a little planning, you can even prepare your business for future downturns with this same process. Having the right plan and processes in place will make crisis planning easier and, ideally, recession-proof your business .

12. You’ll be ready to sell

You might decide to sell your business or position yourself for acquisition down the road. Having a solid business plan helps make the case for a higher valuation. 

Your business is likely worth more to a buyer if it’s easy for them to understand your business model, your target market, and your overall potential to grow and scale. 

Remember, if you were buying a business , you’d likely want to see their business plan and any previous documentation. So, the more organized and professional your plan is, the easier it will be for a buyer to say yes.

13. It’s easier than you think

You may be procrastinating in writing a business plan because it sounds like a lot of work. The truth is that planning is much less complicated than you think. 

Start small by writing a simple business plan you can complete in about half an hour. With the emergence of AI business plan generators , getting stuck with a blank page is a thing of the past. Just be sure that you don’t just let AI write your plan for you and keep yourself involved in the planning process.

From there, refine your plan until your idea is solid. At that point, you can invest more time in a more detailed business plan. Just start with the basics and expand from there.

14. You’ll sleep better at night

When you have a plan for your business, you have peace of mind. You know that you’ve invested the time to figure out a business model that works, and you’ve considered different financial scenarios so you can handle the unexpected. 

Plus, you have a management tool to run your business better than your competitors. 

15. Research shows that business plans work

A Journal of Management Studies study found that businesses that take the time to plan grow 30% faster than those that don’t. 

Our own 2021 small business research study found that 58% of small business owners who have or are working on a plan feel confident in their business, even amidst a crisis. 

A study in Small Business Economics found that entrepreneurs who write business plans for their ideas are 152% more likely to actually start their businesses.

There’s plenty of additional research linking business planning with success, so it’s a proven fact that you won’t waste time when you write your plan.

Why is a business plan important? Because it sets you up for success

There are plenty of reasons to write a business plan, but they all relate to one thing—increasing the likelihood of success for you and your business. 

Taking the time to plan is an investment in yourself and your business that will pay dividends, whether you’re starting a new business or taking your existing business to the next level. 

If you’ve been putting off writing a business plan, now is the time to do it. Start by downloading one of the many free business plan templates out there, or for additional guidance, invest in an online business plan builder .

No matter what business planning tool you choose, just deciding to write a business plan will set you up to build, run, and grow your business. So, don’t wait—start planning today.

What is a business plan?

A business plan is a structured document that outlines the goals, strategies, target market, and financial forecasts of a business. It serves as a roadmap for the business, detailing the steps necessary to achieve success.

Why is planning necessary?

Business planning is essential because it helps businesses set clear goals, allocate resources efficiently, identify potential challenges, and develop strategies to overcome them. It also provides a framework for decision-making and helps attract investors by demonstrating the viability of the business.

What happens if a business doesn’t plan?

Without planning, a business may lack direction and clarity, leading to inefficient use of resources, missed opportunities, and an inability to respond effectively to market changes. This can result in financial difficulties, operational challenges, and ultimately, business failure.

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Noah Parsons

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The importance of a business plan

Business plans are like road maps: it’s possible to travel without one, but that will only increase the odds of getting lost along the way.

Owners with a business plan see growth 30% faster than those without one, and 71% of the fast-growing companies have business plans . Before we get into the thick of it, let’s define and go over what a business plan actually is.

What is a business plan?

A business plan is a 15-20 page document that outlines how you will achieve your business objectives and includes information about your product, marketing strategies, and finances. You should create one when you’re starting a new business and keep updating it as your business grows.

Rather than putting yourself in a position where you may have to stop and ask for directions or even circle back and start over, small business owners often use business plans to help guide them. That’s because they help them see the bigger picture, plan ahead, make important decisions, and improve the overall likelihood of success. ‍

Why is a business plan important?

A well-written business plan is an important tool because it gives entrepreneurs and small business owners, as well as their employees, the ability to lay out their goals and track their progress as their business begins to grow. Business planning should be the first thing done when starting a new business. Business plans are also important for attracting investors so they can determine if your business is on the right path and worth putting money into.

Business plans typically include detailed information that can help improve your business’s chances of success, like:

• A market analysis : gathering information about factors and conditions that affect your industry
• Competitive analysis : evaluating the strengths and weaknesses of your competitors
• Customer segmentation : divide your customers into different groups based on specific characteristics to improve your marketing
• Marketing: using your research to advertise your business
• Logistics and operations plans : planning and executing the most efficient production process
• Cash flow projection : being prepared for how much money is going into and out of your business
• An overall path to long-term growth

What is the purpose of a business plan?

A business plan is like a map for small business owners, showing them where to go and how to get there. Its main purposes are to help you avoid risks, keep everyone on the same page, plan finances, check if your business idea is good, make operations smoother, and adapt to changes. It's a way for small business owners to plan, communicate, and stay on track toward their goals.

10 reasons why you need a business plan

I know what you’re thinking: “Do I really need a business plan? It sounds like a lot of work, plus I heard they’re outdated and I like figuring things out as I go...”.

The answer is: yes, you really do need a business plan! As entrepreneur Kevin J. Donaldson said, “Going into business without a business plan is like going on a mountain trek without a map or GPS support—you’ll eventually get lost and starve! Though it may sound tedious and time-consuming, business plans are critical to starting your business and setting yourself up for success.

To outline the importance of business plans and make the process sound less daunting, here are 10 reasons why you need one for your small business.

1. To help you with critical decisions

The primary importance of a business plan is that they help you make better decisions. Entrepreneurship is often an endless exercise in decision making and crisis management. Sitting down and considering all the ramifications of any given decision is a luxury that small businesses can’t always afford. That’s where a business plan comes in.

Building a business plan allows you to determine the answer to some of the most critical business decisions ahead of time.

Creating a robust business plan is a forcing function—you have to sit down and think about major components of your business before you get started, like your marketing strategy and what products you’ll sell. You answer many tough questions before they arise. And thinking deeply about your core strategies can also help you understand how those decisions will impact your broader strategy.

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2. To iron out the kinks

Putting together a business plan requires entrepreneurs to ask themselves a lot of hard questions and take the time to come up with well-researched and insightful answers. Even if the document itself were to disappear as soon as it’s completed, the practice of writing it helps to articulate your vision in realistic terms and better determine if there are any gaps in your strategy.

3. To avoid the big mistakes

Only about half of small businesses are still around to celebrate their fifth birthday . While there are many reasons why small businesses fail, many of the most common are purposefully addressed in business plans.

According to data from CB Insights , some of the most common reasons businesses fail include:

• No market need : No one wants what you’re selling.
• Lack of capital : Cash flow issues or businesses simply run out of money.
• Inadequate team : This underscores the importance of hiring the right people to help you run your business.
• Stiff competition : It’s tough to generate a steady profit when you have a lot of competitors in your space.
• Pricing : Some entrepreneurs price their products or services too high or too low—both scenarios can be a recipe for disaster.

The exercise of creating a business plan can help you avoid these major mistakes. Whether it’s cash flow forecasts or a product-market fit analysis , every piece of a business plan can help spot some of those potentially critical mistakes before they arise. For example, don’t be afraid to scrap an idea you really loved if it turns out there’s no market need. Be honest with yourself!

Get a jumpstart on your business plan by creating your own cash flow projection .

4. To prove the viability of the business

Many businesses are created out of passion, and while passion can be a great motivator, it’s not a great proof point.

Planning out exactly how you’re going to turn that vision into a successful business is perhaps the most important step between concept and reality. Business plans can help you confirm that your grand idea makes sound business sense.

A critical component of your business plan is the market research section. Market research can offer deep insight into your customers, your competitors, and your chosen industry. Not only can it enlighten entrepreneurs who are starting up a new business, but it can also better inform existing businesses on activities like marketing, advertising, and releasing new products or services.

Want to prove there’s a market gap? Here’s how you can get started with market research.

5. To set better objectives and benchmarks

Without a business plan, objectives often become arbitrary, without much rhyme or reason behind them. Having a business plan can help make those benchmarks more intentional and consequential. They can also help keep you accountable to your long-term vision and strategy, and gain insights into how your strategy is (or isn’t) coming together over time.

6. To communicate objectives and benchmarks

Whether you’re managing a team of 100 or a team of two, you can’t always be there to make every decision yourself. Think of the business plan like a substitute teacher, ready to answer questions any time there’s an absence. Let your staff know that when in doubt, they can always consult the business plan to understand the next steps in the event that they can’t get an answer from you directly.

Sharing your business plan with team members also helps ensure that all members are aligned with what you’re doing, why, and share the same understanding of long-term objectives.

7. To provide a guide for service providers

Small businesses typically employ contractors , freelancers, and other professionals to help them with tasks like accounting , marketing, legal assistance, and as consultants. Having a business plan in place allows you to easily share relevant sections with those you rely on to support the organization, while ensuring everyone is on the same page.

8. To secure financing

Did you know you’re 2.5x more likely to get funded if you have a business plan?If you’re planning on pitching to venture capitalists, borrowing from a bank, or are considering selling your company in the future, you’re likely going to need a business plan. After all, anyone that’s interested in putting money into your company is going to want to know it’s in good hands and that it’s viable in the long run. Business plans are the most effective ways of proving that and are typically a requirement for anyone seeking outside financing.

Learn what you need to get a small business loan.

9. To better understand the broader landscape

No business is an island, and while you might have a strong handle on everything happening under your own roof, it’s equally important to understand the market terrain as well. Writing a business plan can go a long way in helping you better understand your competition and the market you’re operating in more broadly, illuminate consumer trends and preferences, potential disruptions and other insights that aren’t always plainly visible.

10. To reduce risk

Entrepreneurship is a risky business, but that risk becomes significantly more manageable once tested against a well-crafted business plan. Drawing up revenue and expense projections, devising logistics and operational plans, and understanding the market and competitive landscape can all help reduce the risk factor from an inherently precarious way to make a living. Having a business plan allows you to leave less up to chance, make better decisions, and enjoy the clearest possible view of the future of your company.

Business plan FAQs

How does having a business plan help small business owners make better decisions.

Having a business plan supports small business owners in making smarter decisions by providing a structured framework to assess all parts of their businesses. It helps you foresee potential challenges, identify opportunities, and set clear objectives. Business plans help you make decisions across the board, including market strategies, financial management, resource allocation, and growth planning.

What industry-specific issues can business plans help tackle?

Business plans can address industry-specific challenges like regulatory compliance, technological advancements, market trends, and competitive landscape. For instance, in highly regulated industries like healthcare or finance, a comprehensive business plan can outline compliance measures and risk management strategies.

How can small business owners use their business plans to pitch investors or apply for loans?

In addition to attracting investors and securing financing, small business owners can leverage their business plans during pitches or loan applications by focusing on key elements that resonate with potential stakeholders. This includes highlighting market analysis, competitive advantages, revenue projections, and scalability plans. Presenting a well-researched and data-driven business plan demonstrates credibility and makes investors or lenders feel confident about your business’s potential health and growth.

Understanding the importance of a business plan

Now that you have a solid grasp on the “why” behind business plans, you can confidently move forward with creating your own.

Remember that a business plan will grow and evolve along with your business, so it’s an important part of your whole journey—not just the beginning.

Related Posts

Now that you’ve read up on the purpose of a business plan, check out our guide to help you get started.

The information and tips shared on this blog are meant to be used as learning and personal development tools as you launch, run and grow your business. While a good place to start, these articles should not take the place of personalized advice from professionals. As our lawyers would say: “All content on Wave’s blog is intended for informational purposes only. It should not be considered legal or financial advice.” Additionally, Wave is the legal copyright holder of all materials on the blog, and others cannot re-use or publish it without our written consent.

20 Reasons Why You Need a Business Plan in 2024

Written by Dave Lavinsky

What is a Business Plan?

A business plan is a document that details your business concept and strategy for growth. It provides details about your company, a competitive analysis, a market analysis, a marketing strategy to reach potential customers, and a financial plan so that you make the best possible decisions to start or grow your company. A good business plan will help you take your business idea and turn it into a tangible action plan for success.

What is the Purpose of a Business Plan?

A business plan serves as an essential tool for guiding a company’s direction and decision-making processes. Its core purpose is to provide a detailed roadmap that communicates the company’s mission and vision, long-term objectives, and tailored strategies intended to steer the business towards success. This living document plays a pivotal role in streamlining operations, achieving goals, and setting a foundation for sustained growth. The purposes of a business plan include:

• Creating an Effective Growth Strategy : It outlines a comprehensive plan that identifies clear steps and strategies for expanding the market presence and ideal customer base for the business.
• Determining Future Financial Needs : By creating financial projections, a business plan helps in understanding the capital requirements to fuel growth initiatives and sustain operations.
• Attracting Investors and Lenders : A well-crafted business plan is instrumental in drawing attention from potential investors, including angel investors and venture capitalists, by showcasing the growth potential and profitability prospects of the business.

By leveraging a business plan template , entrepreneurs can significantly enhance their ability to communicate their vision, attract necessary funding, and ensure that all stakeholders are aligned with the company’s strategic direction.

20 Reasons Why You Need a Business Plan

There are countless reasons why having a well-crafted business plan is essential to the success of any company. Here are top 20 reasons why a business plan is important:

1. To Prove That You’re Serious About Your Business

A formal business plan is necessary to show all interested parties — employees, investors, partners and yourself — that you are committed to building the business. Creating your plan forces you to think through and select the strategies that will propel your growth.

2. To Establish Business Milestones

The business plan should clearly lay out the long-term milestones that are most important to the success of your business. To paraphrase Guy Kawasaki, a milestone is something significant enough to come home and tell your spouse about (without boring him or her to death). Would you tell your spouse that you tweaked the company brochure? Probably not. But you’d certainly share the news that you launched your new website or reached $1M in annual revenues.

3. To Better Understand Your Competition

Creating the business plan forces you to analyze the competition. All companies have competition in the form of either direct or indirect competitors, and it is critical to understand your company’s competitive advantages or unique value proposition. And if you don’t currently have competitive advantages, to figure out what you must do to gain them.

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4. To Better Understand Your Customer

Why do they buy when they buy? Why don’t they when they don’t? An in-depth customer analysis is essential to a great business plan and to a successful business. Understanding your customers will not only allow you to create better products and services for them, but will allow you to more cost-effectively reach them via advertising and promotions.

5. To Enunciate Previously Unstated Assumptions

The process of actually writing a business plan helps to bring previously “hidden” assumptions to the foreground. By writing them down and assessing them, you can test them and analyze their validity. For example, you might have assumed that local retailers would carry your product; in your business plan, you could assess the results of the scenario in which this didn’t occur.

6. To Assess the Feasibility of Your Venture

How good is this opportunity? The business plan process involves researching your target market, as well as the competitive landscape, and serves as a feasibility study for the success of your venture. In some cases, the result of your business planning will be to table the venture. And it might be to go forward with a different venture that may have a better chance of long-term success.

7. To Document Your Revenue Model

How exactly will your business make money? This is a critical question to answer in writing, for yourself and your investors. Documenting the revenue model helps to address challenges and assumptions associated with the model. And upon reading your plan, others may suggest additional revenue streams to consider.

8. To Determine Your Financial Needs

Does your business need to raise funds? How much? One of the purposes of a business plan is to help you to determine exactly how much capital you need and what you will use it for. This process is essential for raising capital for business and for effectively employing the capital. It will also enable you to plan ahead, particularly if you need to raise additional funding in the future.

9. To Attract Investors

A formal business plan is the basis for financing proposals. The business plan answers investors’ questions such as: Is there a need for this product/service? What are the financial projections? What is the company’s exit strategy? While investors will generally want to meet you in person before writing you a check, in nearly all cases, they will also thoroughly review your business plan.

10. To Reduce the Risk of Pursuing the Wrong Opportunity

The process of creating the business plan helps to minimize opportunity costs. Writing the business plan helps you assess the attractiveness of this particular opportunity, versus other opportunities. So you make the best decisions.

11. To Force You to Conduct Market Research and Really Know Your Market

What are the most important trends in your industry? What are the greatest threats to your industry? Is the market growing or shrinking? What is the size of the target audience for your product/service? Creating the business plan will help you to gain a wider, deeper, and more nuanced understanding of your marketplace. And it will allow you to use this knowledge to make decisions to improve your company’s success.

12. To Attract Employees and a Management Team

To attract and retain top quality talent, a business plan is necessary. The business plan inspires employees and management that your great idea is sound and that the business is poised to achieve its strategic goals. Importantly, as you grow your company, your employees and not you will do most of the work. So getting them aligned and motivated will be key to your success.

13. To Plot Your Course and Focus Your Efforts

The business plan provides a roadmap from which to operate, and to look to for direction in times of doubt. Without a business plan, you may shift your short-term strategies constantly without a view to your long-term milestones. You wouldn’t go on a long driving trip without a map; think of your business plan as your map.

14. To Attract Partners

Partners also want to see a business plan, in order to determine whether it is worth partnering with your business. Establishing partnerships often requires time and capital, and companies will be more likely to partner with your venture if they can read a detailed information about your company.

15. To Position Your Brand

Creating the business plan helps to define your company’s role in the marketplace. This definition allows you to succinctly describe the business and position the brand to customers, investors, and partners. With the industry, customer and competitive insight you gain during the business planning process, you can best determine how to position your brand.

16. To Judge the Success of Your Business

A formal business plan allows you to compare actual operational results versus the business plan itself. In this way, it allows you to clearly see whether you have achieved your strategic, financing, and operational goals (and why you have or have not).

17. To Reposition Your Business to Deal with Changing Conditions

For example, during difficult economic conditions, if your current sales and operational models aren’t working, you can rewrite your business plan to define, try, and validate new business ideas and strategies.

18. To Document Your Marketing Plan

How are you going to reach your customers? How will you retain them? What is your advertising budget? What price will you charge? A well-documented marketing plan is essential to the growth of a business. And the marketing strategies and tactics you use will evolve each year, so revisiting your marketing plan at least annually is critical.

19. To Understand and Forecast Your Company’s Staffing Needs

After completing your business plan, you will not be surprised when you are suddenly short-handed. Rather, your business plan provides a roadmap for your staffing needs, and thus helps to ensure smoother expansion. Importantly your plan can not only help you understand your staffing needs, but ensure your timing is right as it is time consuming to recruit and train great employees.

20. To Uncover New Opportunities

Through the process of brainstorming, white-boarding and creative interviewing, you will likely see your business in a different light. As a result, you will often come up with new ideas for marketing your product/service and running your business. It’s coming up with these ideas and executing on them which is often the difference between a business that fails or just survives and one that thrives.

Make Your Business Planning Count

One of the most common reasons businesses fail is the lack of a clear, strategic plan that addresses key components of running a business. Business plans help in identifying and navigating the challenges that can derail a business’s success, including poor market analysis, inadequate financial planning, and an unclear business model. By taking the time to write a business plan, entrepreneurs can clarify their business strategy, identify potential obstacles before they arise, and establish company goals that will set you up for success.

About Growthink Since 1999, Growthink’s business plan experts have assisted thousands of clients in launching and growing their businesses, and raising more than $2.5 billion in growth financing.

Need help with your business plan? 

• Speak with a professional business plan consultant from our team.
• Use our simple business plan template .
• Check out our business plan examples .
• Or, if you’re creating your own PPM, you can save time and money with Growthink’s private placement memorandum template .
• Learn more about us via our Growthink Business Plan Review page

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20 Essential Reasons Why You Need a Business Plan?

Free Business Planning E-Book

• December 18, 2023

11 Min Read

When Meta was initially planning to go mass scale, founder Zuckerberg had a plan for the next three, five, and ten years.

As reported by Business Insider , they knew their expenses would increase by a whopping 70%, but they were confident because they had a foolproof business plan at their disposal.

Fast forward to today, we all know where they stand—neither Facebook nor Mark needs an introduction.

Well, if that is not a compelling reason as to why you need a business plan , we have 20 straightforward reasons to convince you.

But before we get there, let’s have a quick rundown of the benefits of having a business plan.

Key benefits of having a business plan

A meticulously crafted business plan holds significant value, offering operational, financial, as well as strategic benefits to emerging as well as existing businesses.

A quick rundown of these key benefits will help you get a more enhanced understanding.

• Helps evaluate the feasibility and viability of your business idea.
• Identifies potential business challenges and creates strategies to mitigate them efficiently.
• Offers a strategic and operational roadmap to attain your business goals.
• Develop strategies to attract your target audience and retain your existing customers.
• Attract investors to raise funding.
• Define resources and SOPs to operate the business efficiently.

That being the benefits, a well-drafted business plan is indeed an asset for your business.

20 Reasons Why You Need a Business Plan

• To test the viability of your business idea
• To reduce potential risks
• To determine your funding needs
• To outline a perfect marketing strategy
• To better understand your competition
• To help you grow 30% faster
• To secure funding
• To attract investors
• To set goals for everyone
• To make sound decisions
• Catch critical cash-flow problems early
• To position your brand in the market
• To better understand your customer
• To build the team
• Future-proof your business
• Tracks Your Progress
• To sell your business
• To allot resources
• To increase the odds of succeeding
• To make An exit plan

Let us now understand the sure-shot reasons why you need a business plan.

1. To test the viability of your business idea

Think about this—you have a couple of business ideas. However, can you start working on both of them at once? Of course not. You need to see which idea can gain you profitability and which needs to be chucked off permanently.

A business plan forces you to think of everything about your business as:

• What is the market demand?
• Which market segment will you cater to?
• What is the expected profitability of a particular business idea in the local market?
• Who are the competitors and what is your competitive advantage?
• What entry barriers do you have to go through?
• How much capital will you require to start a particular business?
• What is the financial forecasting of the business?

This way you will get a chance to question everything that takes to start a successful business, which will ultimately help you decide the viability of your business idea.

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2. To reduce potential risks

Every business contains risks, and a solid plan is like taking some of that risk out of the business.

It not only helps you to know the viability of your business but also other aspects like:

• Are your operational costs manageable?
• Will your proposed model generate sales or do you need to switch to another?
• What will be the break-even point and when will your business achieve it according to the financial projections?
• How will you manage if the demand for your product or service decreases?
• What will be your exit strategy?

These are all risk-related questions you will get answers to while creating a business plan.

For those who already have a business and are working on expanding it, a business plan will help you understand the associated potential risks and challenges and strategies to mitigate them.

Hence, knowing potential risks beforehand will help you solve them smoothly without a big fuss.

3. To determine your funding needs

A business plan helps evaluate the funding essential for your business. It tells you exactly how much money you need to raise and what funding sources you should opt for.

A business plan includes detailed financial projections and a plan explaining how the funding will be utilized in different business ventures. This makes it easier for you to make realistic funding demands essential to grow your business.

4. To outline a perfect marketing strategy

When you sit to write a business plan , you will be required to dive deep into the study of the target market and competitors.

Such a nuanced understanding of your customers, strengths, and business environment will help you create a marketing plan that’s in line with your objectives and reality.

A solid plan outlines your marketing objectives, brand position, and marketing budget, and describes the marketing strategies to attain your desired market position.

Not only is this plan essential from an investor’s point of view. But it will also serve as a guide for your marketing team to streamline the marketing activities.

5. To better understand your competition

You have to first understand and describe who are your competitors, what is their price point, what is their USP, what is their market positioning, and what products or services they provide.

This stage helps you know the competitors , their working styles, target customers, and everything about them. It forces you to do 360° research about your competitors to know the exact brand positioning of your business.

6. To help you grow 30% faster

Creating a plan goes beyond trying to foresee the future of your company. The significance lies in the process itself. The business plan is a living document; you can revisit your plan and alter it according to the market situation to reach your goals and ensure success.

Studies confirm that companies engaging in regular planning experience a 30% faster growth rate.

It’s proven that businesses that plan are less prone to facing unfortunate failure or cash flow crisis that could jeopardize their existence.

7. To secure funding

Traditional banks and investors ask for a well-detailed business plan to consider your funding request. While their focus would be on the financial aspects of the plan, they would also like to understand your industry and market before making any decision.

A well-detailed plan wins the trust of potential investors in your business idea and your ability to turn it successful by helping you secure essential funds.

8. To attract investors

A business plan is the basis for investors ’ decisions. It demonstrates your market understanding, offers a realistic sense of finances, and answers important questions an investor might have.

This may include questions like,

• Is there any market demand for your products and services?
• What are the financial forecasts?
• When will the company turn profitable?
• What is the company’s exit strategy?

An investor will analyze and evaluate your business on all fronts before entertaining the idea of investing in your business.

9. To set goals for everyone

Setting goals and deadlines for everyone from the management team to other employees will make everyone’s task clear. This way everyone can make their mini-plan and organize things according to the priority.

Business planning makes everything clear in your head before you communicate it with your team and makes sure that you all are on the same page.

10. To make sound decisions

A well-detailed plan acts as a reference point for any kind of decision-making. Think of it as your business guide, which will eventually bring everything into place.

11. Catch critical cash-flow problems early

Smooth cash flow is one of the main bricks of any business. It is one of the key financial statements your investors will review.

A part of preparing a business plan includes creating detailed cash-flow projections for the next 3-5 years. With projections at hand, it gets easier to track your performance and take timely action to avoid extreme cash-flow disturbance.

In short, having a financial plan will ensure that there aren’t any cash-related crises where you can’t pay your bills timely.

12. To position your brand in the market

Writing a business plan helps you to thoroughly understand the industry, competitive, and customer landscape of your business. It defines your company’s role in the marketplace and thereby helps you position your brand in the right place.

13. To better understand your customer

Preparing a business plan helps you understand your target audience and their behavior patterns in great detail. It offers insight into the pain points, needs, wants, and purchasing patterns of your potential customers and shows the best possible way to reach them.

Such an in-depth understanding of customers helps you to optimize your product offerings and marketing strategies.

14. To build the team

One of the main overlooked sides of a business plan is the success metric it provides. An integral part of creating a plan involves mentioning all your goals and predictions.

By regularly reviewing that, you will be able to know which business milestones you have reached and what is the next one. Furthermore, you can even know about the setbacks of your business and then re-edit your business plan according to the market analysis and situation.

15. Future-proof your business

Whether yours is a new business or an existing one—the readers will be interested in getting a future overview of your business.

While writing a business plan , you work on practical assumptions and test various unlikely scenarios to understand the position of your business under different circumstances.

By preparing for different challenging situations, a business plan equips you to promptly face any expected challenges that may arise in the future.

16. Track your progress

17. to sell your business.

Down the road, if you ever decide to merge your business with someone else or want to sell it, a business plan will be an asset that will support you in selling your business.

It will help protect your brand and financial position from any third party. From portraying your brand’s milestones to business experience— one can get all the essential business information from your business plan.

18. To allot resources

As a business owner, you know there are many investments and expenses you need to make before & after starting a business. Thus, allocating those resources to different segments of the business is necessary.

A business plan provides an exact idea of your investments and resources needed in each segment of the business.

19. To increase the odds of succeeding

A well-written business plan increases your chance of building a successful business.

According to research, entrepreneurs with a written plan are 16% more likely to attain business viability than those who don’t.

A business plan helps anticipate the challenges, prepares you to face them strategically, and increases your odds of succeeding in the competitive environment.

20. To sell your business

Beyond guiding day-to-day operations, your business plan is a valuable tool for planning your exit strategy . While many entrepreneurs focus extensively on launching their businesses, not as many plan for the eventual need to liquidate or transfer ownership.

Your chosen exit strategy could be driven by various factors, such as achieving your business goals and shifting focus or selling to an acquirer. Therefore, even for partnership or dissolvation, an exit strategy is necessary.

Start Writing your Business Plan with Upmetrics

Told you, there are various reasons why you should not skip writing a business plan. Besides, why should you, especially when you have resourceful business plan software like Upmetrics to help you out?

It offers an extensive collection of highly customizable business plan examples along with step-by-step instructions to help you write a detailed and actionable plan for your business.

Simply choose a sample relevant to your business and get started.

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Frequently Asked Questions

What is the purpose of a business plan.

There are three main purposes of a business plan:

• Secure funding
• Guiding operations
• Evaluating the progress of your business

How long should a business plan be?

Generally, the length of a business plan depends on the niche of the business and the purpose of the business plan. Ideally, a business plan should be 15-35 pages.

What resources are available to help write a business plan?

To secure funding and impress potential investors, an engaging business plan is necessary. Here are some resources from where you can find business plans:

• Business plan Samples from SBA , Upmetrics , SCORE
• AI business plan generator
• Business plan writer

Should you write a business plan even if you don't need funding?

A business plan will help you detect the problems beforehand. It also helps you in creating marketing & operational strategy. A business plan also guides you as a roadmap. Thus, even if you don’t need funding for your small business, a business plan is necessary.

When should you write a business plan—before or after starting a business?

If you need funding, you have to write a business plan before you start any business. But if you are expanding an existing business or writing a business plan as a guide for your new business, then anytime is okay. Note: Sooner is always better in this case.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Nine reasons why you need a business plan

Building a great business plan helps you plan, strategize and succeed. Presented by Chase for Business .

Making the decision to create a new business is an exciting yet stressful experience. Starting a business involves many tasks and obstacles, so it’s important to focus before you take action. A solid business plan can provide direction, help you attract investors and ensure you maintain momentum.

No matter what industry you plan on going into, a business plan is the first step for any successful enterprise. Building your business plan helps you figure out where you want your business to go and identify the necessary steps to get you there. This is a key document for your company to both guide your actions and track your progress.

What is the purpose of a business plan?

Think of a business plan like a roadmap. It enables you to solve problems and make key business decisions, such as marketing and competitive analysis, customer and market analysis and logistics and operations plans.

It can also help you organize your thoughts and goals, as well as give you a better idea of how your company will work. Good planning is often the difference between success and failure.

Here are nine reasons your company needs a business plan.

1. Prove your idea is viable

Through the process of writing a business plan, you can assess whether your company will be successful. Understanding market dynamics, as well as competitors, will help determine if your idea is viable.

This is also the time to develop financial projections for your business plan, like estimated startup costs, a profit and loss forecast, a break-even analysis and a cash flow statement . By taking time to investigate the viability of your idea, you can build goals and strategies to support your path to success.

A proper business plan proves to all interested parties—including potential investors, customers, employees, partners and most importantly yourself — that you are serious about your business.

2. Set important goals

As a business owner, the bulk of your time will mostly likely be spent managing day-to-day tasks. As a result, it might be hard to find time after you launch your business to set goals and milestones. Writing a business plan allows you to lay out significant goals for yourself ahead of time for three or even five years down the road. Create both short- and long-term business goals. 

3. Reduce potential risks

Prevent your business from falling victim to unexpected dangers by researching before you break ground. A business plan opens your eyes to potential risks that your business could face. Don’t be afraid to ask yourself the hard questions that may need research and analysis to answer. This is also good practice in how your business would actually manage issues when they arise. Incorporate a contingency plan that identifies risks and how you would respond to them effectively.

The most common reasons businesses fail include:

• Lack of capital
• Lack of market impact or need
• Unresearched pricing (too high or low)
• Explosive growth that drains all your capital
• Stiff competition

Lack of capital is the most prevalent reason why businesses fail. To best alleviate this problem, take time to determine how your business will generate revenue. Build a comprehensive model to help mitigate future risks and long-term pain points. This can be turned into a tool to manage growth and expansion.

4. Secure investments

Whether you’re planning to apply for an SBA loan , build a relationship with angel investors or seek venture capital funding, you need more than just an elevator pitch to get funding. All credible investors will want to review your business plan. Although investors will focus on the financial aspects of the plan, they will also want to see if you’ve spent time researching your industry, developed a viable product or service and created a strong marketing strategy.

While building your business plan, think about how much raised capital you need to get your idea off the ground. Determine exactly how much funding you’ll need and what you will use it for. This is essential for raising and employing capital.

5. Allot resources and plan purchases

You will have many investments to make at the launch of your business, such as product and services development, new technology, hiring, operations, sales and marketing. Resource planning is an important part of your business plan. It gives you an idea of how much you’ll need to spend on resources and it ensures your business will manage those resources effectively.  

A business plan provides clarity about necessary assets and investment for each item. A good business plan can also determine when it is feasible to expand to a larger store or workspace.

In your plan, include research on new products and services, where you can buy reliable equipment and what technologies you may need. Allocate capital and plan how you’ll fund major purchases, such as with a Chase small business checking account or business credit card .

6. Build your team

From seasoned executives to skilled labor, a compelling business plan can help you attract top-tier talent, ideally inspiring management and employees long after hiring. Business plans include an overview of your executive team as well as the different roles you need filled immediately and further down the line.

Small businesses often employ specialized consultants, contractors and freelancers for individual tasks such as marketing, accounting and legal assistance. Sharing a business plan helps the larger team work collectively in the same direction. 

This will also come into play when you begin working with any new partners. As a new business, a potential partner may ask to see your business plan. Building partnerships takes time and money, and with a solid business plan you have the opportunity to attract and work with the type of partners your new business needs.

7. Share your vision 

When you start a business, it's easy to assume you'll be available to guide your team. A business plan helps your team and investors understand your vision for the company. Your plan will outline your goals and can help your team make decisions or take action on your behalf. Share your business plan with employees to align your full staff toward a collective goal or objective for the company.  Consider employee and stakeholder ownership as a compelling and motivating force. 

8. Develop a marketing strategy

A marketing strategy details how you will reach your customers and build brand awareness. The clearer your brand positioning is to investors, customers, partners and employees, the more successful your business will be.

Important questions to consider as you build your marketing strategy include:

• What industry segments are we pursuing?
• What is the value proposition of the products or services we plan to offer?
• Who are our customers?
• How will we retain our customers and keep them engaged with our products or services and marketing?
• What is our advertising budget?
• What price will we charge?
• What is the overall look and feel of our brand? What are our brand guidelines?
• Will we need to hire marketing experts to help us create our brand?
• Who are our competitors? What marketing strategies have worked (or not worked) for them?

With a thoughtful marketing strategy integrated into your business plan, your company goals are significantly more in reach.

9. Focus your energy

Your business plan determines which areas of your business to focus on while also avoiding possible distractions. It provides a roadmap for critical tradeoffs and resource allocation.

As a business owner, you will feel the urge to solve all of your internal and customers’ problems, but it is important to maintain focus. Keep your priorities at the top of your mind as you set off to build your company.

As a small business owner, writing a business plan should be one of your first priorities. Read our checklist for starting a business, and learn how to take your business from a plan to reality. When you’re ready to get started, talk with a Chase business banker to open a Chase business checking or savings account today.

For Informational/Educational Purposes Only: The views expressed in this article may differ from other employees and departments of JPMorgan Chase & Co. Views and strategies described may not be appropriate for everyone and are not intended as specific advice/recommendation for any individual. You should carefully consider your needs and objectives before making any decisions and consult the appropriate professional(s). Outlooks and past performance are not guarantees of future results.

JPMorgan Chase Bank, N.A. Member FDIC. Equal Opportunity Lender, ©2023 JPMorgan Chase & Co

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What is a Business Plan? Definition and Resources

9 min. read

Updated July 29, 2024

If you’ve ever jotted down a business idea on a napkin with a few tasks you need to accomplish, you’ve written a business plan — or at least the very basic components of one.

The origin of formal business plans is murky. But they certainly go back centuries. And when you consider that 20% of new businesses fail in year 1 , and half fail within 5 years, the importance of thorough planning and research should be clear.

But just what is a business plan? And what’s required to move from a series of ideas to a formal plan? Here we’ll answer that question and explain why you need one to be a successful business owner.

• What is a business plan?

A business plan lays out a strategic roadmap for any new or growing business.

Any entrepreneur with a great idea for a business needs to conduct market research , analyze their competitors , validate their idea by talking to potential customers, and define their unique value proposition .

The business plan captures that opportunity you see for your company: it describes your product or service and business model , and the target market you’ll serve. 

It also includes details on how you’ll execute your plan: how you’ll price and market your solution and your financial projections .

Reasons for writing a business plan

If you’re asking yourself, ‘Do I really need to write a business plan?’ consider this fact: 

Companies that commit to planning grow 30% faster than those that don’t.

Creating a business plan is crucial for businesses of any size or stage. It helps you develop a working business and avoid consequences that could stop you before you ever start.

If you plan to raise funds for your business through a traditional bank loan or SBA loan , none of them will want to move forward without seeing your business plan. Venture capital firms may or may not ask for one, but you’ll still need to do thorough planning to create a pitch that makes them want to invest.

But it’s more than just a means of getting your business funded . The plan is also your roadmap to identify and address potential risks. 

It’s not a one-time document. Your business plan is a living guide to ensure your business stays on course.

Related: 14 of the top reasons why you need a business plan

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What research shows about business plans

Numerous studies have established that planning improves business performance:

• 71% of fast-growing companies have business plans that include budgets, sales goals, and marketing and sales strategies.
• Companies that clearly define their value proposition are more successful than those that can’t.
• Companies or startups with a business plan are more likely to get funding than those without one.
• Starting the business planning process before investing in marketing reduces the likelihood of business failure.

The planning process significantly impacts business growth for existing companies and startups alike.

Read More: Research-backed reasons why writing a business plan matters

When should you write a business plan?

No two business plans are alike. 

Yet there are similar questions for anyone considering writing a plan to answer. One basic but important question is when to start writing it.

A Harvard Business Review study found that the ideal time to write a business plan is between 6 and 12 months after deciding to start a business. 

But the reality can be more nuanced – it depends on the stage a business is in, or the type of business plan being written.

Ideal times to write a business plan include:

• When you have an idea for a business
• When you’re starting a business
• When you’re preparing to buy (or sell)
• When you’re trying to get funding
• When business conditions change
• When you’re growing or scaling your business

Read More: The best times to write or update your business plan

How often should you update your business plan?

As is often the case, how often a business plan should be updated depends on your circumstances.

A business plan isn’t a homework assignment to complete and forget about. At the same time, no one wants to get so bogged down in the details that they lose sight of day-to-day goals. 

But it should cover new opportunities and threats that a business owner surfaces, and incorporate feedback they get from customers. So it can’t be a static document.

Related Reading: 5 fundamental principles of business planning

For an entrepreneur at the ideation stage, writing and checking back on their business plan will help them determine if they can turn that idea into a profitable business .

And for owners of up-and-running businesses, updating the plan (or rewriting it) will help them respond to market shifts they wouldn’t be prepared for otherwise. 

It also lets them compare their forecasts and budgets to actual financial results. This invaluable process surfaces where a business might be out-performing expectations and where weak performance may require a prompt strategy change. 

The planning process is what uncovers those insights.

Related Reading: 10 prompts to help you write a business plan with AI

• How long should your business plan be?

Thinking about a business plan strictly in terms of page length can risk overlooking more important factors, like the level of detail or clarity in the plan. 

Not all of the plan consists of writing – there are also financial tables, graphs, and product illustrations to include.

But there are a few general rules to consider about a plan’s length:

• Your business plan shouldn’t take more than 15 minutes to skim.
• Business plans for internal use (not for a bank loan or outside investment) can be as short as 5 to 10 pages.

A good practice is to write your business plan to match the expectations of your audience. 

If you’re walking into a bank looking for a loan, your plan should match the formal, professional style that a loan officer would expect . But if you’re writing it for stakeholders on your own team—shorter and less formal (even just a few pages) could be the better way to go.

The length of your plan may also depend on the stage your business is in. 

For instance, a startup plan won’t have nearly as much financial information to include as a plan written for an established company will.

Read More: How long should your business plan be?  

What information is included in a business plan?

The contents of a plan business plan will vary depending on the industry the business is in. 

After all, someone opening a new restaurant will have different customers, inventory needs, and marketing tactics to consider than someone bringing a new medical device to the market. 

But there are some common elements that most business plans include:

• Executive summary: An overview of the business operation, strategy, and goals. The executive summary should be written last, despite being the first thing anyone will read.
• Products and services: A description of the solution that a business is bringing to the market, emphasizing how it solves the problem customers are facing.
• Market analysis: An examination of the demographic and psychographic attributes of likely customers, resulting in the profile of an ideal customer for the business.
• Competitive analysis: Documenting the competitors a business will face in the market, and their strengths and weaknesses relative to those competitors.
• Marketing and sales plan: Summarizing a business’s tactics to position their product or service favorably in the market, attract customers, and generate revenue.
• Operational plan: Detailing the requirements to run the business day-to-day, including staffing, equipment, inventory, and facility needs.
• Organization and management structure: A listing of the departments and position breakdown of the business, as well as descriptions of the backgrounds and qualifications of the leadership team.
• Key milestones: Laying out the key dates that a business is projected to reach certain milestones , such as revenue, break-even, or customer acquisition goals.
• Financial plan: Balance sheets, cash flow forecast , and sales and expense forecasts with forward-looking financial projections, listing assumptions and potential risks that could affect the accuracy of the plan.
• Appendix: All of the supporting information that doesn’t fit into specific sections of the business plan, such as data and charts.

Read More: Use this business plan outline to organize your plan

• Different types of business plans

A business plan isn’t a one-size-fits-all document. There are numerous ways to create an effective business plan that fits entrepreneurs’ or established business owners’ needs. 

Here are a few of the most common types of business plans for small businesses:

• One-page plan : Outlining all of the most important information about a business into an adaptable one-page plan.
• Growth plan : An ongoing business management plan that ensures business tactics and strategies are aligned as a business scales up.
• Internal plan : A shorter version of a full business plan to be shared with internal stakeholders – ideal for established companies considering strategic shifts.

Business plan vs. operational plan vs. strategic plan

• What questions are you trying to answer? 
• Are you trying to lay out a plan for the actual running of your business?
• Is your focus on how you will meet short or long-term goals? 

Since your objective will ultimately inform your plan, you need to know what you’re trying to accomplish before you start writing.

While a business plan provides the foundation for a business, other types of plans support this guiding document.

An operational plan sets short-term goals for the business by laying out where it plans to focus energy and investments and when it plans to hit key milestones.

Then there is the strategic plan , which examines longer-range opportunities for the business, and how to meet those larger goals over time.

Read More: How to use a business plan for strategic development and operations

• Business plan vs. business model

If a business plan describes the tactics an entrepreneur will use to succeed in the market, then the business model represents how they will make money. 

The difference may seem subtle, but it’s important. 

Think of a business plan as the roadmap for how to exploit market opportunities and reach a state of sustainable growth. By contrast, the business model lays out how a business will operate and what it will look like once it has reached that growth phase.

Learn More: The differences between a business model and business plan

• Moving from idea to business plan

Now that you understand what a business plan is, the next step is to start writing your business plan . 

The best way to start is by reviewing examples and downloading a business plan template . These resources will provide you with guidance and inspiration to help you write a plan.

We recommend starting with a simple one-page plan ; it streamlines the planning process and helps you organize your ideas. However, if one page doesn’t fit your needs, there are plenty of other great templates available that will put you well on your way to writing a useful business plan.

Tim Berry is the founder and chairman of Palo Alto Software , a co-founder of Borland International, and a recognized expert in business planning. He has an MBA from Stanford and degrees with honors from the University of Oregon and the University of Notre Dame. Today, Tim dedicates most of his time to blogging, teaching and evangelizing for business planning.

Table of Contents

• Reasons to write a business plan
• Business planning research
• When to write a business plan
• When to update a business plan
• Information to include
• Business vs. operational vs. strategic plans

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What is a Business Plan? Definition, Tips, and Templates

Published: June 28, 2024

Years ago, I had an idea to launch a line of region-specific board games. I knew there was a market for games that celebrated local culture and heritage. I was so excited about the concept and couldn't wait to get started.

But my idea never took off. Why? Because I didn‘t have a plan. I lacked direction, missed opportunities, and ultimately, the venture never got off the ground.

And that’s exactly why a business plan is important. It cements your vision, gives you clarity, and outlines your next step.

In this post, I‘ll explain what a business plan is, the reasons why you’d need one, identify different types of business plans, and what you should include in yours.

Table of Contents

What is a business plan?

What is a business plan used for.

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Purposes of a Business Plan

What does a business plan need to include, types of business plans.

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A business plan is a comprehensive document that outlines a company's goals, strategies, and financial projections. It provides a detailed description of the business, including its products or services, target market, competitive landscape, and marketing and sales strategies. The plan also includes a financial section that forecasts revenue, expenses, and cash flow, as well as a funding request if the business is seeking investment.

The business plan is an undeniably critical component to getting any company off the ground. It's key to securing financing, documenting your business model, outlining your financial projections, and turning that nugget of a business idea into a reality.

The purpose of a business plan is three-fold: It summarizes the organization’s strategy in order to execute it long term, secures financing from investors, and helps forecast future business demands.

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6. Attracts and Retains Talent

A well-articulated plan outlines your company's vision, mission, and values, showcasing a clear direction and purpose. People who want meaningful work that aligns with their ambitions will love this.

Also, it shows the company's potential for growth and stability. This instills confidence in employees and assures them of a secure future and opportunities for career advancement.

When you show growth potential and highlight a positive work culture, your business plan becomes a magnet for top talent.

7. Provides a Roadmap

A business plan provides a detailed roadmap for your company's future. It outlines your objectives, strategies, and the specific actions you need to achieve your goals.

When you define your path forward, a business plan helps you stay focused and on track, even when you face challenges or distractions. It’s a great reference tool that allows you to make smart decisions that align with your overall vision.

This way, having a comprehensive roadmap in the form of a business plan provides direction and clarity at every stage of your business journey.

8. Serves as a Marketing Tool

A business plan is not only an internal guide but also serves as a powerful marketing tool. Your business plan can showcase your company‘s strengths, unique value proposition, and growth potential when you’re looking for investors, partnerships, or new clients.

It provides a professional and polished overview of your business, which shows your commitment and strategic thinking to potential stakeholders.

Your business plan helps you attract the right people by clearly articulating your target market, competitive advantages, and financial projections. In summary, it acts as a persuasive sales pitch.

• Business Plan Subtitle
• Executive Summary
• Company Description
• The Business Opportunity
• Competitive Analysis
• Target Market
• Marketing Plan
• Financial Summary
• Funding Requirements

1. Business Plan Subtitle

Every great business plan starts with a captivating title and subtitle. You’ll want to make it clear that the document is, in fact, a business plan, but the subtitle can help tell the story of your business in just a short sentence.

2. Executive Summary

Although this is the last part of the business plan that you’ll write, it’s the first section (and maybe the only section) that stakeholders will read.

The executive summary of a business plan sets the stage for the rest of the document. It includes your company’s mission or vision statement, value proposition, and long-term goals.

3. Company Description

This brief part of your business plan will detail your business name, years in operation, key offerings, and positioning statement.

You might even add core values or a short history of the company. The company description’s role in a business plan is to introduce your business to the reader in a compelling and concise way.

4. The Business Opportunity

The business opportunity should convince investors that your organization meets the needs of the market in a way that no other company can.

This section explains the specific problem your business solves within the marketplace and how it solves them. It will include your value proposition as well as some high-level information about your target market.

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The importance of business plan: 5 key reasons.

A key part of any business is its business plan. They can help define the goals of your business and help it reach success. A good business plan can also help you develop an adequate marketing strategy. There are a number of reasons all business owners need business plans, keep reading to learn more!

Here’s What We’ll Cover:

What Is a Business Plan?

5 reasons you need a well-written business plan, how do i make a business plan, key takeaways.

A business plan contains detailed information that can help determine its success. Some of this information can include the following:

• Market analysis
• Cash flow projection
• Competitive analysis
• Financial statements and financial projections
• An operating plan

A solid business plan is a good way to attract potential investors. It can also help you display to business partners that you have a successful business growing. In a competitive landscape, a formal business plan is your key to success.

Check out all of the biggest reasons you need a good business plan below.

1. To Secure Funding

Whether you’re seeking funding from a venture capitalist or a bank, you’ll need a business plan. Business plans are the foundation of a business. They tell the parties that you’re seeking funding from whether or not you’re worth investing in. If you need any sort of outside financing, you’ll need a good business plan to secure it.

2. Set and Communicate Goals

A business plan gives you a tangible way of reviewing your business goals. Business plans revolve around the present and the future. When you establish your goals and put them in writing, you’re more likely to reach them. A strong business plan includes these goals, and allows you to communicate them to investors and employees alike.

3. Prove Viability in the Market

While many businesses are born from passion, not many will last without an effective business plan. While a business concept may seem sound, things may change once the specifics are written down. Often, people who attempt to start a business without a plan will fail. This is because they don’t take into account all of the planning and funds needed to get a business off of the ground.

Market research is a large part of the business planning process. It lets you review your potential customers, as well as the competition, in your field. By understanding both you can set price points for products or services. Sometimes, it may not make sense to start a business based on the existing competition. Other times, market research can guide you to effective marketing strategies that others lack. To have a successful business, it has to be viable. A business plan will help you determine that.

4. They Help Owners Avoid Failure

Far too often, small businesses fail. Many times, this is due to the lack of a strong business plan. There are many reasons that small businesses fail, most of which can be avoided by developing a business plan. Some of them are listed below, which can be avoided by having a business plan:

• The market doesn’t need the business’s product or service
• The business didn’t take into account the amount of capital needed
• The market is oversaturated
• The prices set by the business are too high, pushing potential customers away

Any good business plan includes information to help business owners avoid these issues.

5. Business Plans Reduce Risk

Related to the last reason, business plans help reduce risk. A well-thought-out business plan helps reduce risky decisions. They help business owners make informed decisions based on the research they conduct. Any business owner can tell you that the most important part of their job is making critical decisions. A business plan that factors in all possible situations helps make those decisions.

Luckily, there are plenty of tools available to help you create a business plan. A simple search can lead you to helpful tools, like a business plan template . These are helpful, as they let you fill in the information as you go. Many of them provide basic instructions on how to create the business plan, as well.

If you plan on starting a business, you’ll need a business plan. They’re good for a vast number of things. Business plans help owners make informed decisions, as well as set goals and secure funding. Don’t put off putting together your business plan!

If you’re in the planning stages of your business, be sure to check out our resource hub . We have plenty of valuable resources and articles for you when you’re just getting started. Check it out today!

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Why do you need a business plan? Here are the reasons

Every year, thousands of new businesses see the light of the day across the world. However, only a tiny percentage of them survive in the long run. Talking about the United States, according to the Bureau of Labour Statistics, about 20% of small businesses fail in their first year, and about 50% in their fifth year.

Research from the University of Tennessee found that 44% of businesses fail within the first three years. Among those that operate within specific sectors, like information (mostly tech firms), 63% shut shop within three years. Why so? Most studies mention “lack of business planning” as one of the reasons.

“Running a business without a plan is like riding a motorcycle up a craggy cliff blindfolded. Yet, way too many firms (a whopping 67%) don’t have a formal business plan in place. It doesn’t matter if you’re a start-up with a great idea or a business with an excellent product. You can only go so far without a roadmap, or a business plan. Only, a business plan is so much more than just a roadmap. A solid plan allows a business to weather market challenges and pivots quickly in the face of crisis, like the one global businesses are struggling with right now, in the post-pandemic world,” said Simplilearn.

What Business Plan Is All About?

A business plan is a document in writing that outlines the goals, objectives, and purpose of a venture while laying out the blueprint for its daily operations and key functions such as marketing, finance, and expansion.

A good business plan, for example, can be a game-changer for start-ups that are looking to raise funds to grow and scale. It convinces prospective investors that the venture will be profitable and provides a realistic outlook on how much profit is on the cards and by when it will be attained.

When it comes to well-established companies and large conglomerates, they also need to tweak their business plans to adapt to new operational environments and unpredictable market changes. A detailed business plan offers a birds-eye view of the entire framework of an establishment; it has several benefits that make it an important part of any organisation.

An effective business plan offers a significant competitive edge like setting realistic objectives and assigning stipulated time for those goals to be met, thereby ensuring long-term profitability. It also lets a company set benchmarks and Key Performance Indicators (KPIs) necessary to reach its goals.

A good business plan also helps to effectively organise and allocate the company’s resources, providing an understanding of the result (including financial impacts) of actions like opening new offices, recruiting staff, production change, and so on.

Though business plans vary from company to company, the blueprints of successful companies often serve as an excellent guide for start-ups and new entrepreneurs . The same roadmap also helps existing firms to market, advertise, and promote new products and services in the market. A well-thought-out business plan provides an organisation with the ability to anticipate the curveballs that the future could throw at them, thereby preparing answers and solutions well in advance.

Why You Need to Craft Business Plans?

Doing a little homework now and crafting a business plan will make your life much easier and save you tons of time later on. Here are five good reasons why every entrepreneur needs a business plan:

Need Of Thinking Through The Aspects

As entrepreneurs, we need to focus on the excitement of doing something new. For start-ups, for example, it’s all about setting the nuts and bolts together, such as setting up an accounting system or dealing with employee law.

“To write a good business plan, you have to think about how you’ll handle every aspect of your business—marketing, managing, financing, and more. You’re forced to focus on the very areas you’re tempted to skim over (which are usually the places where you need to really drill down). When your business plan is done, you’ll have a blueprint for success,” says Rieva Lesonsky, who creates content focusing on small business and entrepreneurship.

Entrepreneurship is often an endless exercise in decision-making and crisis management. Sitting down and considering all the ramifications of any given decision is a luxury that small businesses (even start-ups), especially, can’t always afford. That’s where a business plan becomes crucial.

Spotting Problems Ahead Of Time

“Would you rather uncover problems with your business concept during the planning stage—or wait until you’ve already spent money on a location, inventory, or employees? By identifying possible obstacles, your business plan will help you plan how to avoid them,” Lesonsky comments.

There are many reasons why small businesses fail, According to data from CB Insights, some of the most common reasons businesses fail include: lack of market need of the product you are trying to sell, lack of capital, inadequate team (maybe the right people haven’t been hired for the job), stiff market competition (posing a challenge towards steady profit flow) and pricing (pricing products/services too high or too low).

“The exercise of creating a business plan can help you avoid these major mistakes. Whether its cash flow forecasts or a product-market fit analysis, every piece of a business plan can help spot some of those potentially critical mistakes before they arise,” says Jared Lindzon, public speaker and Fast Company contributor.

Helps To Become Good Communicator

An entrepreneur needs to look out for business partners, vendors, or even first employees. It can be hard to convince people of the merits of a business that doesn’t yet exist. A business plan can, if communicated well, show people what you’re planning to do so they will have a better idea of whether they want to be involved.

“Planning out exactly how you’re going to turn that vision into a successful business is perhaps the most important step between concept and reality. Business plans can help you confirm that your grand idea makes sound business sense,” Lindzon said.

Whether an entrepreneur is managing a team of 100 or a team of two, he/she can’t always be there to make every decision yourself. Think of the business plan like a substitute teacher, ready to answer questions any time there’s an absence. Let your staff know that when in doubt, they can always consult the business plan to understand the next steps if they can’t get an answer from you directly.

Sharing your business plan with team members also helps ensure that all members are aligned with what you’re doing, why, and share the same understanding of long-term objectives.

To Prove The Business’ Viability

Many businesses are created out of passion, and from there onwards, they get guided by reasoning. All entrepreneurs come with visions, but they need to sell those visions, prove them viable and convince the investors that they are pumping their money into the right places.

“Planning out exactly how you’re going to turn that vision into a successful business is perhaps the most important step between concept and reality. Business plans can help you confirm that your grand idea makes sound business sense,” explains Lindzon.

Take market research for example. It is a critical component of any business plan, which helps entrepreneurs to have deep insight into their customers, competitors, and the chosen industry. Not only can it enlighten the founders starting up a new business, but can also better inform existing businesses on activities like marketing, advertising, and releasing new products/services.

Entrepreneurship is a risky business, but the risk becomes significantly more manageable once tested against a well-crafted business plan. Drawing up revenue and expense projections, devising logistics and operational plans, and understanding the market and competitive landscape can all be game changers for a company’s prospects.

To Secure Financing

“Did you know you’re 2.5x more likely to get funded if you have a business plan? If you’re planning on pitching to venture capitalists, borrowing from a bank, or considering selling your company in the future, you’re likely going to need a business plan. After all, anyone who’s interested in putting money into your company is going to want to know it’s in good hands and that it’s viable in the long run. Business plans are the most effective ways of proving that and are typically a requirement for anyone seeking outside financing,” Lindzon summed up things beautifully through these words.

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What Is a Business Plan?

Understanding business plans, how to write a business plan, common elements of a business plan, the bottom line, business plan: what it is, what's included, and how to write one.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

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A business plan is a document that outlines a company's goals and the strategies to achieve them. It's valuable for both startups and established companies. For startups, a well-crafted business plan is crucial for attracting potential lenders and investors. Established businesses use business plans to stay on track and aligned with their growth objectives. This article will explain the key components of an effective business plan and guidance on how to write one.

Key Takeaways

• A business plan is a document detailing a company's business activities and strategies for achieving its goals.
• Startup companies use business plans to launch their venture and to attract outside investors.
• For established companies, a business plan helps keep the executive team focused on short- and long-term objectives.
• There's no single required format for a business plan, but certain key elements are essential for most companies.

Investopedia / Ryan Oakley

Any new business should have a business plan in place before beginning operations. Banks and venture capital firms often want to see a business plan before considering making a loan or providing capital to new businesses.

Even if a company doesn't need additional funding, having a business plan helps it stay focused on its goals. Research from the University of Oregon shows that businesses with a plan are significantly more likely to secure funding than those without one. Moreover, companies with a business plan grow 30% faster than those that don't plan. According to a Harvard Business Review article, entrepreneurs who write formal plans are 16% more likely to achieve viability than those who don't.

A business plan should ideally be reviewed and updated periodically to reflect achieved goals or changes in direction. An established business moving in a new direction might even create an entirely new plan.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. It allows for careful consideration of ideas before significant investment, highlights potential obstacles to success, and provides a tool for seeking objective feedback from trusted outsiders. A business plan may also help ensure that a company’s executive team remains aligned on strategic action items and priorities.

While business plans vary widely, even among competitors in the same industry, they often share basic elements detailed below.

A well-crafted business plan is essential for attracting investors and guiding a company's strategic growth. It should address market needs and investor requirements and provide clear financial projections.

While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.

Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.

The length of a business plan can vary greatly from business to business. Regardless, gathering the basic information into a 15- to 25-page document is best. Any additional crucial elements, such as patent applications, can be referenced in the main document and included as appendices.

Common elements in many business plans include:

• Executive summary : This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
• Products and services : Describe the products and services the company offers or plans to introduce. Include details on pricing, product lifespan, and unique consumer benefits. Mention production and manufacturing processes, relevant patents , proprietary technology , and research and development (R&D) information.
• Market analysis : Explain the current state of the industry and the competition. Detail where the company fits in, the types of customers it plans to target, and how it plans to capture market share from competitors.
• Marketing strategy : Outline the company's plans to attract and retain customers, including anticipated advertising and marketing campaigns. Describe the distribution channels that will be used to deliver products or services to consumers.
• Financial plans and projections : Established businesses should include financial statements, balance sheets, and other relevant financial information. New businesses should provide financial targets and estimates for the first few years. This section may also include any funding requests.

Investors want to see a clear exit strategy, expected returns, and a timeline for cashing out. It's likely a good idea to provide five-year profitability forecasts and realistic financial estimates.

2 Types of Business Plans

Business plans can vary in format, often categorized into traditional and lean startup plans. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These are detailed and lengthy, requiring more effort to create but offering comprehensive information that can be persuasive to potential investors.
• Lean startup business plans : These are concise, sometimes just one page, and focus on key elements. While they save time, companies should be ready to provide additional details if requested by investors or lenders.

Why Do Business Plans Fail?

A business plan isn't a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections. Markets and the economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All this calls for building flexibility into your plan, so you can pivot to a new course if needed.

How Often Should a Business Plan Be Updated?

How frequently a business plan needs to be revised will depend on its nature. Updating your business plan is crucial due to changes in external factors (market trends, competition, and regulations) and internal developments (like employee growth and new products). While a well-established business might want to review its plan once a year and make changes if necessary, a new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is ideal for quickly explaining a business, especially for new companies that don't have much information yet. Key sections may include a value proposition , major activities and advantages, resources (staff, intellectual property, and capital), partnerships, customer segments, and revenue sources.

A well-crafted business plan is crucial for any company, whether it's a startup looking for investment or an established business wanting to stay on course. It outlines goals and strategies, boosting a company's chances of securing funding and achieving growth.

As your business and the market change, update your business plan regularly. This keeps it relevant and aligned with your current goals and conditions. Think of your business plan as a living document that evolves with your company, not something carved in stone.

University of Oregon Department of Economics. " Evaluation of the Effectiveness of Business Planning Using Palo Alto's Business Plan Pro ." Eason Ding & Tim Hursey.

Bplans. " Do You Need a Business Plan? Scientific Research Says Yes ."

Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."

Harvard Business Review. " How to Write a Winning Business Plan ."

U.S. Small Business Administration. " Write Your Business Plan ."

SCORE. " When and Why Should You Review Your Business Plan? "

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Why A Thoughtful Business Plan Is Essential For Success

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Starting a business is an exciting journey, full of opportunities and challenges. For women entrepreneurs, particularly those transitioning from corporate life to entrepreneurship, the path can feel daunting. But with the right roadmap (a well-thought-out business plan), you can navigate the uncertainties and set your business up for success.

A business plan is more than just a document; it's your blueprint for building and growing your business. It outlines your goals, strategies, and the steps you need to take to achieve them. A strong business plan not only guides your decisions but also communicates your vision to potential investors, partners, and employees.

Here’s why a business plan is crucial and how you can create one that will steer your business toward success.

The Importance of a Well-Thought-Out Business Plan

1. clarifies your vision and objectives.

As you build out your business plan it forces you to think deeply about your business idea and if it’s a viable idea. What exactly are you trying to achieve? What are your short-term and long-term goals? By putting these thoughts on paper, you create a clear vision that will guide every decision you make.

2. Helps You Understand Your Market

Researching and writing a business plan requires you to analyze your market. Who are your competitors? Who is your target audience? What are the market trends? This understanding helps you position your business strategically and identify opportunities for growth.

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Best 5% interest savings accounts of 2024, 3. defines your strategy.

A business plan includes your marketing strategy, sales approach, and operational plan and outlines how you will achieve objectives. This strategic framework ensures that your efforts are aligned and focused on achieving your goals.

4. Secures Funding

If you need financial support to start or grow your business, a well-prepared business plan is essential. Investors and lenders want to see a clear plan for how you will generate revenue and repay any loans. A business plan that demonstrates a thorough understanding of your industry and a solid strategy is more likely to attract funding.

5. Guides Your Decision-Making

A business plan serves as a reference point, helping you make informed decisions that align with your long-term goals. By consistently referring to your business plan, you ensure that every decision contributes to the overarching vision and objectives of your business, ultimately driving growth and success.

6. Tracks Your Progress

A business plan includes milestones and key performance indicators (KPIs) that allow you to track your progress. Regularly reviewing your business plan helps you stay on course, adjust your strategies as needed, and celebrate your successes.

The bottom line is that creating a business plan is a crucial step in turning your entrepreneurial dreams into reality. It’s your roadmap, guiding you through the complexities of starting and growing a business. For women entrepreneurs, especially those transitioning from a corporate career, a well-thought-out business plan can provide the clarity, confidence, and direction needed to succeed. Take the time to craft a business plan that reflects your vision and sets the foundation for a thriving, profitable business.

Melissa Houston, CPA is the author of Cash Confident: An Entrepreneur’s Guide to Creating a Profitable Business and the founder of She Means Profit . As a Business Strategist for small business owners, Melissa helps women making mid-career shifts, to launch their dream businesses, and also guides established business owners to grow their businesses to more profitably.

The opinions expressed in this article are not intended to replace any professional or expert accounting and/or tax advice whatsoever.

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6 Reasons Why You Need a Business Plan

A business plan is very important and for entrepreneurs to secure funding such as bank loans that’s why do you need a business plan. Get some Reasons! A good business plan helps you prove your business idea, grow faster, secure funding, reduce risk, build a team, and develop a rewarding marketing strategy.

Why should I write a business plan ? If you’re like many entrepreneurs excited to get your idea off the ground, then the idea of sitting down and writing a business plan may falsely look like a waste of time.

Why is a business plan important?

A business plan stands as a cornerstone for entrepreneurs, a strategic tool that charts the path to success. A well-crafted business plan not only directs entrepreneurs towards the vital steps needed for their business ideas to flourish but also paves the way for both short-term and long-term achievements.

Before embarking on the journey of crafting a business plan, it’s essential to ponder three critical questions:

• What do you wish to inspire in their response?
• How will this plan adapt to the ever-changing business environment?
• Who will be the reader of this plan?

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Starting a business is a lot of work, and it can be tempting to just wing it. But if you want your business to be successful, you need a plan. A business plan is a written document that outlines your goals, strategies, and how you plan to achieve them.

Here are five reasons why you need a business plan, even if you’re a startup:

1. It helps you think through your business model.

When you’re writing a business plan, you’re forced to think through all the key aspects of your business, such as your target market , products and services , pricing strategy , and marketing plan . This process can help you identify any potential problems or gaps in your business model before you launch.

2. It helps you secure funding.

If you’re planning to raise money from investors , you’ll need a business plan. Investors want to see that you have a clear plan for how you’re going to use their money to grow your business. A well-written business plan will show investors that you’re serious about your business and that you have a realistic chance of success.

3. It helps you attract and retain employees.

Potential employees want to know that they’re joining a company with a bright future. A business plan can help you show potential employees that your company has a clear vision and a plan for growth . It can also help you attract and retain talented employees by offering them a sense of ownership in the company’s success.

4. It helps you stay on track.

As your business grows and changes, it’s important to have a roadmap to guide you. Your business plan can serve as this roadmap. By regularly reviewing and updating your business plan, you can make sure that your business is on track to achieve its goals.

5. It helps you adapt to change.

The business world is constantly changing, and it’s important to be able to adapt to these changes. Your business plan can help you stay flexible and adaptable. By regularly reviewing your business plan, you can identify any potential threats or opportunities and make necessary adjustments to your strategies.

6. It helps you identify and mitigate risks.

Every business faces risks, such as competition, economic downturns, and regulatory changes. A business plan can help you identify and assess these risks, and develop strategies to mitigate them.

For example, your business plan may include a section on risk management that identifies the following risks:

• Increased competition from new entrants to the market.
• A potential economic recession.
• New regulations that could impact your business.

Your business plan can then outline strategies for mitigating these risks, such as:

• Developing a strong brand identity to differentiate your business from the competition.
• Diversifying your product or service offerings to reduce your reliance on any one product or service.
• Building relationships with key stakeholders, such as government officials and industry leaders, to stay ahead of the curve on regulatory changes.

By having a business plan in place, you’ll be better prepared to deal with any challenges that come your way.

Free: Business Plan Examples

Do you need help creating a business plan? Check out these 14 free, proven business plan examples from different industries to help you write your own.

A business plan serves as a roadmap for your business. It outlines your goals, strategies, and the steps you need to take to achieve success. It provides a clear direction, helps you make informed decisions, attracts investors or lenders, and keeps you focused on your objectives.

There are several benefits to having a business plan. It helps you:

• Define your business goals and objectives.
• Identify your target market and understand customer needs.
• Develop strategies to differentiate your business from competitors.
• Determine your financial projections and funding requirements.
• Create a framework for measuring progress and evaluating success.
• Communicate your business concept effectively to stakeholders.

Every entrepreneur or business owner, regardless of the size or stage of their business, can benefit from having a business plan. Whether you’re starting a new venture, seeking funding, expanding an existing business, or reevaluating your strategies, a well-crafted business plan provides guidance and serves as a valuable tool.

A comprehensive business plan typically includes the following sections:

• Executive Summary: An overview of your business and its objectives.
• Company Description: Detailed information about your business, its structure, and mission.
• Market Analysis: Research on your target market, competition, and industry trends.
• Products or Services: Description of what you offer and how it meets customer needs.
• Marketing and Sales Strategy: Plans for promoting and selling your products or services.
• Organization and Management: Details about your team and organizational structure.
• Financial Projections: Forecasts of revenue, expenses, and profitability.
• Funding Request (if applicable): If seeking funding, details on the amount and purpose of the funding.

A business plan is not a static document. It should be seen as a dynamic tool that evolves with your business. Regularly reviewing and updating your business plan allows you to adapt to market changes, revise your strategies, and set new goals. This ensures that your business remains relevant, competitive, and aligned with your long-term vision.

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15 Reasons You Need a Business Plan Whether you're just starting out, growing your business or seeking outside help, a well-thought-out business plan is the vehicle you need to get you there.

By Tim Berry Edited by Dan Bova Mar 13, 2006

Opinions expressed by Entrepreneur contributors are their own.

Why do you want a business plan? You already know the obvious reasons, but there are so many other good reasons to create a business plan that many business owners don't know about. So, just for a change, let's take a look at the less obvious reasons first and finish with the ones you probably already know about. Think of this as a late-show top 10, with us building up to the most important reasons you need a business plan.

15. Set specific objectives for managers. Good management requires setting specific objectives and then tracking and following up. I'm surprised how many existing businesses manage without a plan. How do they establish what's supposed to happen? In truth, you're really just taking a short cut and planning in your head--and good for you if you can do it--but as your business grows you want to organize and plan better, and communicate the priorities better. Be strategic. Develop a plan; don't just wing it.

14. Share your strategy, priorities and specific action points with your spouse, partner or significant other. Your business life goes by so quickly: a rush of answering phone calls, putting out fires, etc. Don't the other people in your business life need to know what's supposed to be happening? Don't you want them to know?

13. Deal with displacement. Displacement is probably by far the most important practical business concept you've never heard of. It goes like this: "Whatever you do is something else you don't do." Displacement lives at the heart of all small-business strategy. At least most people have never heard of it.

12. Decide whether or not to rent new space. Rent is a new obligation, usually a fixed cost. Do your growth prospects and plans justify taking on this increased fixed cost? Shouldn't that be in your business plan?

11. Hire new people. This is another new obligation (a fixed cost) that increases your risk. How will new people help your business grow and prosper? What exactly are they supposed to be doing? The rationale for hiring should be in your business plan.

10. Decide whether you need new assets, how many, and whether to buy or lease them. Use your business plan to help decide what's going to happen in the long term, which should be an important input to the classic make vs. buy. How long will this important purchase last in your plan?

9. Share and explain business objectives with your management team, employees and new hires. Make selected portions of your business plan part of your new employee training.

8. Develop new business alliances. Use your plan to set targets for new alliances, and selected portions of your plan to communicate with those alliances.

7. Deal with professionals. Share selected highlights or your plans with your attorneys and accountants, and, if this is relevant to you, consultants.

6. Sell your business. Usually the business plan is a very important part of selling the business. Help buyers understand what you have, what it's worth and why they want it.

5. Valuation of the business for formal transactions related to divorce, inheritance, estate planning and tax issues. Valuation is the term for establishing how much your business is worth. Usually that takes a business plan, as well as a professional with experience. The plan tells the valuation expert what your business is doing, when, why and how much that will cost and how much it will produce.

4. Create a new business. Use a plan to establish the right steps to starting a new business, including what you need to do, what resources will be required, and what you expect to happen.

3. Seek investment for a business, whether it's a startup or not. Investors need to see a business plan before they decide whether or not to invest. They'll expect the plan to cover all the main points.

2. Back up a business loan application. Like investors, lenders want to see the plan and will expect the plan to cover the main points.

1. Grow your existing business. Establish strategy and allocate resources according to strategic priority. You can find more information about growing your business with a business plan by reading " Existing Companies Need Planning, Too ."

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Do You Really Need a Business Plan?

The art of storytelling, from net margin to sales.

Why is a business plan important?

• Who will the reader be?
• What do you want their response to be?

Four Reasons to Write a Business Plan

1. To raise money for your business

2. To make sound decisions

3. To help you identify any potential weaknesses

4. To communicate your ideas with stakeholders

More by this contributor:

• Challenges Become Opportunities
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How to Write a Business Plan for Your Small Business

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5 Reasons You Need a Business Plan for Long-Term Success

Do You Really Need a Business Plan?

Alyssa Gregory is an entrepreneur, writer, and marketer with 20 years of experience in the business world. She is the founder of the Small Business Bonfire, a community for entrepreneurs, and has authored more than 2,500 articles for The Balance and other popular small business websites.

Entrepreneurs who are starting a new business often wonder, "Do I really need a business plan? Is writing a business plan really the best use of my time?" The answer to these questions is almost always, "Yes." A business plan is an integral part of starting a new business.

In reality, business plans can take a long time to write, require that you have a tremendous amount of data at your fingertips, depend in part on projections and often are responsible for creating a long list of research you still need to conduct and other work you need to complete.

Plus, not everyone is sold on the usefulness of a business plan. Consider the study of 116 new businesses conducted by Babson College. The study found that the presence of a formal business plan before starting a small business made no difference in the ultimate success of the business, assuming it was one that was not seeking outside funding.

Some also argue that taking the time required to create a business plan can stifle the startup process and cost precious opportunities for a small business.

On the other hand,  one study  found that entrepreneurs who write formal plans are 16% more likely to achieve viability than the otherwise identical non-planning entrepreneurs. Other  studies  have shown that while completing a business plan is not a guarantee of success, it does indicate that the type of entrepreneur who completes a business plan is also more likely to run a successful business.

So why not arm yourself with one of the best tools a small business owner can have? If you're still on the fence, consider these five reasons you should write a business plan before doing anything else in your small business.

1. A Business Plan Is Simply a Must-Have for Some Businesses

If you plan to approach a financial institution for a loan, apply for a small business grant , pitch your business idea to investors, or enlist the support of a business partner, a business plan is required.

Potential investors and supporters want to see the true potential of your business idea clearly laid out in hard facts and numbers. A business plan is the best, and generally, the only acceptable way to provide this information.

2. A Business Plan Helps You Make Decisions

There are some sections in a traditional business plan that you simply cannot complete if you are on the fence, undecided, or not fully committed to a certain point. Business plans help you eliminate the gray area because you have to write specific information down in black and white. Making tough decisions is often one of the hardest and most useful parts of writing a business plan.

For example, if you have not decided on exactly what products you will sell at what price points, it will be very difficult for you to complete the Products and Services Section of your business plan. Identifying this and other vital information is a valuable end product of the business planning process.

3. A Business Plan Can Be a Reality Check

Writing a business plan is often the first real struggle for the small business owner who wants to launch a new venture, but doesn't want to consider that his or her business idea may be a bit flawed or is not yet fully developed.

While this is an unwelcome and terrifying thought for an impassioned entrepreneur, identifying gaps early on in the process gives business owners a chance to shore up their research, test their ideas and take steps to make the business stronger and more viable. This may initially be a step back, but any and all further work can bolster the entrepreneur's chance of success before he or she invests time and money in a business that is likely to fail.

4. A Business Plan Can Give You New Ideas

Discovering new ideas, different approaches and fresh perspectives are some of the best things that can happen from the depths of the business planning process. Despite the sometimes negative reputation, a business plan isn't just a long, stiff and structured document.

In fact, an effective business plan is the opposite; it's a flexible, growing and dynamic tool that can help you think creatively and come up with new solutions for some of your toughest business challenges. This is especially true when you consider the Marketing Strategy Section . Here, as you create a blueprint for your marketing activities, creativity and fresh ideas are invaluable.

5. A Business Plan Creates an Action Plan

A business plan is a useful document for any small business owner. But when you use your business plan as a tool to help you outline action items, next steps, and future activities, you are creating a living, breathing document that not only outlines where you are and where you want to be but also gives you the directions you need to get there.

Going back to the original question of whether or not you really need a business plan, you may still be able to build a successful business without a plan, but it is most certainly easier to do with a well-constructed business plan in your hands.

Keep in mind that if you are using your plan as a true business planning tool, you don't have to wait until you have all of the answers to get started. You can create an outline of your plan now, filling in all of the information you have at this point, and then work on the blanks as you learn more about the market. This type of fluid and flexible document can be invaluable to a new business.

For more on business plans, review this business plan outline . Then, for a quick and painless start to the business planning process, try this simple business plan template.

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5 Reasons Why You Need a Business Plan

Starting a business you should write a business plan--even if you're not raising money any time soon..

Writing a business plan  doesn't mean you have to hole away in a library for months compiling 40-plus pages of text. You can create a plan in under a month, working part time. Use a presentation format like PowerPoint or Keynote to save time, and make it easier to share your plan.

Not all founders or start-ups are the same, of course. You'll want to plan in more detail if you're raising capital or taking on a lot of risk—like investing your savings, leaving a job, or supporting a family. Less detail is fine if you aren't raising money or taking on much risk. For example, if you are writing code in your dorm room, you can experiment to find out what consumers will latch onto before thinking about implementation or financing. 

But either way, you need a plan, and here's why: 1. To avoid big mistakes: The last thing you want to do is work on your start-up for a year, only to realize you were doomed to fail from the start. Many founders learn the hard way that they didn't set aside enough capital to reach their goals, took on partners with the wrong skills and resources, or don't have a viable way to make money. Developing and sharing a business plan can help ensure that you're sprinting down the right path. 2. To counterbalance your emotions: At times during your start-up experience, you'll be manic—so passionate about your ideas you lose sight of reality. At other times, you'll be overwhelmed by doubt, fear, or exhaustion. When your emotions get the best of you, having a business plan lets you step back, and take an objective look at what you are doing and why, what you know for a fact and what you are trying to figure out. 3. To make sure everyone's on the same page: Chances are, you are not building a company by yourself. Ideally, you'll have partners, so you can launch faster, smarter, and with less need to pay employees or suppliers. Even if you don't have partners, you'll have family, friends, and advisers involved. A business plan helps get everyone involved in your start-up heading in the same direction. 4. To develop a game plan: At a start-up, execution is everything. That means you have to set priorities, establish goals, and measure performance.  You also need to identify the key questions to answer, like "What features do customers really want?," "Will customers buy our product and how much will they pay?," and "How can we attract customers in a way that's cost effective and scalable?"  These are all things you'll address during the business planning process. 5. To raise capital.  If you raise or borrow money—even from friends and family—you'll need to communicate your vision in a clear, compelling way. A good business plan will help you do just that. An October 2007 study by  Babson College  found that start-ups with a business plan raised twice as much capital as those without a business plan within the first 12 months.

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6 reasons why you need a business plan before starting a business

Table of Contents

1) Know the market

2) plan your growth, 3) minimise risk, 4) help guide future decisions, 5) improve as you learn more, 6) secure financing, making informed business decisions.

Sometimes success comes with luck. Otherwise, it comes with hard work and planning. If you’d like to maximise your success as you launch a business, this article is for you. 

Learn six reasons you need a business plan before starting a business in this article by Countingup. If you’re new to business, a typical business plan includes research on market trends, competition analyses, customer profiles, marketing goals, logistics and operations plans, cash flow information, and an overall strategy on how they will grow.

Find out how a plan helps your business to:

• Know the market
• Plan your growth
• Minimise risk
• Help guide future decisions
• Improve as you learn more
• Secure financing

This article will cover why you should plan and how you can use these elements to build your business more effectively. If you’re ready to write a business plan instead, check out our dedicated article How to write a business plan . There we cover what sort of information is expected and useful in business plans and how to research them.

At Countingup, we want to empower new entrepreneurs to take on new challenges and be financially independent. Read on to find out more.

If you’re to be successful in business, you need to know your market and the value customers are seeking within it. However, this can potentially be a lot of information to gather and manage. Therefore, you need a business plan to centralise and summarise all the important reasons why your business is valuable.  

To do this, you need to consider two main perspectives: what your customers want and what your competitors are already offering. This second question is essential as it will allow you to identify how you can be different.  If you already have something of a business idea or would like to turn a side-hustle into a full-time job, you should do research to understand if your idea will be a viable business and how. This market research in your business plan should look something like the following:

From your research, you can build a detailed picture of where your business should be positioned as you launch from the market gaps you’ve identified. 

As you anticipate what your business might look like in five years, you may have some ideas for milestones to hit. For example: first customer, thousandth customer, break-even financially, first £1,000 in profit, and so on. However, do you know how you’re going to reach each of them? 

From the market research you’ve just completed, your business plan allows you to take various steps to use this information. Therefore, you need a business plan to maximise your growth and create specific objectives and strategies to meet this growth. 

For example, if you run a craft beer business, you might aim to sell 1,000 units within your first year. Your sales objective could be achieved with a strategy to ‘Attend trade fairs and beer festivals to meet potential retailers and interested customers’. Depending on the direction you choose in providing to retailers or selling directly to customers, you can reach this objective (first 1,000 units) in very different ways.

In contrast, if you run a consultancy business in financial services or marketing, you could aim to grow your client base to 12 full-time contracts across the year. Therefore, you might plan to ‘Use social media and industry contacts to advertise to clients’ or ‘Develop your service to retain clients for longer periods and larger projects’. These goals’ methods are critically different from one another – therefore strategies for your goals will need to be relevant and focused.

Once you’ve taken steps to meet these objectives, you can use your business plan to track your progress and identify where you still need to develop your business. With these formalised goals and methods, you can grow your business faster than entrepreneurs who don’t plan. 

Another direction in which to focus market research within your business plan is towards identifying vulnerabilities. Each business has fragile areas where they are threatened. Therefore, you need a business plan to protect weak points and avoid excessive risk sources.

From the SWOT analysis (strengths, weaknesses, opportunities and threats) included in your business plan, you can highlight areas that may need more proactive management and back-up plans in case something goes wrong. For example, this can be recognising whether your business idea is patentable, if external factors are driving up costs for consumers or if customer interest is a fading trend. Each of these threats and weaknesses presents vastly different problems to your business. Therefore, each will also need suitable methods to address them.

As you’re looking to start, having this awareness can mean you can anticipate problems ahead of time. Depending on the severity of these issues, you can take steps to cushion any damage or preserve your profits entirely. Without this insight, you leave yourself open to threats you were able to anticipate and mitigate but didn’t manage to – a critical oversight for any business owner.

On balance, having this awareness of weaknesses and threats can be more important than your opportunities, as you’ll be aware of steps to avoid and what to look out for. Therefore, outline threats to your business’ future to protect it.

Unfortunately, even the best plans have blindspots and circumstances where they’re of limited use. Therefore, you need a business plan to navigate uncertain futures.

Your market research is a snapshot of the market at one point in time. Therefore, the information, objectives and strategies you create are only useful for a certain period after this. If something changes in the market or some element of your business no longer works, you can still fall back on other parts of your business plan without having to start from scratch. 

For example, as you build your business, you can revisit future objectives and decide whether your currently available options can still meet them. If they do, and you’re able to stay on target for your goals, you can grow your business in the direction you initially planned. However, where your plan hasn’t worked out, you’ll need to decide to the best of your ability.

Navigating these future scenarios with updated information is especially important as you balance the short and long-term priorities of growing your business. For example, do you want to take more money to compensate yourself or reinvest a higher proportion of your profits in the hopes of growth later on?

Even if you’ve planned to reinvest every penny for the first 5 years, maybe something in your personal life has meant you need to support yourself.

Some critical information to look out for as your business plan evolves includes: 

• Demand lower than predicted
• Cash flow issues due to poor forecasting
• Not enough differentiation from competitors
• Prices too high or too low for the industry to be sustainable

As the months and years pass by while you trade and grow your business, you can update your plan with more insight. Therefore, you need a business plan to improve your business.

As an example, in some instances, a manufacturing process is harder than anticipated or a planned funding source isn’t available. Here, you can adapt your growth strategies based on this new information and update your plan to be more pragmatic and accurate. Similarly, if you find that certain marketing strategies don’t work, you can rule out certain business strategies in the future to expand your business with more confidence.

There would be little point in planning a course of action for your business, facing difficulties and then not updating your plan with a new direction. This would risk your business being disorganised and ineffective in its growth.

Even if your initial plans and growth strategies go the way you planned, at a certain point, your plan will expire anyway. This is because you can only plan so much on a single market snapshot. Therefore, you can use the experience you gain with time from growing your business to fine-tune your plans. This will make sure your business is always performing at its best within an evolving marketplace.

Finally, investors and lenders want to see entrepreneurs with a good understanding of what they offer to customers and a clear vision of how to grow their business. Therefore, you need a business plan to help convince other people that your business has value and potential.

When seeking funding, having a business plan to share with potential investors and lenders is sometimes a requirement as they’ll want to evaluate your claims more critically. While they may not be familiar with every business plan they come across, they may know more about typical business growth patterns and will be able to spot poor research or naive expectations. 

Therefore, having a detailed and realistic business outline can help your plan withstand their criticism and robustly show your growth potential. Similarly, if you’re considering an exit strategy to sell your business in the future, a business plan may be needed to secure a higher valuation. 

If you’d like to know more about communicating your business’s value and plan to secure funding, read our dedicated article How to present a business plan to potential investors . 

Make your business plan more effective with Countingup.

Countingup is your business current account and accounting software in one app. With it, you can automate your financial admin and save time – so you can get back to doing what you love.

The Countingup app offers real-time profit and loss data so you detect changes in your business’ performance as they happen. So you’ll be able to see success instantly if you change your marketing strategy. 

Get paid faster and improve your cash flow with automated invoicing. Gain complete confidence in your books as they’re always accurate and up to date – even if you’re on the go – with automatic expense categorisation and prompts for receipt capture as you make transactions. Countingup’s tax estimate tool will help you confidently set aside the right amount each year to pay any tax owed. Find out more here and sign up for free today.

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3 Reasons Why Your Data Backup Needs File Version Control 

Throughout a file’s lifecycle at an organization, it will go through significant change over time as employees add and remove information from it. Whether it’s a one-off project or a living document with new information continually being added, change is constant. As a result there will come a time when you need to roll back changes, check who modified the file, or review how the file has changed across its lifecycle. Due to these needs, file version controls are an essential part of any organization’s data backup strategy.

What Is File Version Control?

File version control refers to the practice of keeping multiple copies of a file, with each copy showing change in the file through time. With file version control, you can roll back to old versions of your file or see how the file has changed by accessing older versions. 

How Does File Version Control Work?

While you can manually perform file versioning by using “Save As” to make a copy of your file every time you make a change, that’s time-consuming and easy to forget. As a result, version control for files is best implemented through an automated system. For software development and other collaboratively shared-resources this is often managed by a change management system like Github or Bitbucket. For other data, however, version control tends to be managed as a feature of backup software. A strong backup solution will automatically create and save a version of the file every time a change is made.

Backup software with file version control will safely back up multiple versions of your files to the software provider’s cloud. If you need to access an earlier file version, you can easily download the file from the backup software. Having multiple versions of a file that you can quickly download and review allows you to restore any lost information, correct mistakes, and see what changes have been made over the course of the file’s life. Additionally, in situations like ransomware recovery, having multiple “good” versions of your files stored in a backup solution is the difference between having to pay up and being back up in minutes.

Many backup providers will only allow you to store a set maximum number of file versions, meaning you may have to delete older versions when creating new ones. This “version buffer” style version control solution can present issues in situations where a large number of versions are created in rapid sequence such as during a ransomware attack. To address this, some providers offer unlimited file versioning to allow users to keep as many versions of their files as they need. 

What Are the Benefits of File Version Control for Data Backup?

Utilizing backup software with file version control features provides several benefits including  greater transparency, improved efficiency, and stronger data resiliency. As you consider investing in a backup solution with version control for files, review the following benefits of file version control below:

1. Greater Transparency for a File’s Life Cycle

When you need to trace how a file has changed, you can easily do so with file version control in place. For example, a backup solution with version control makes it trivial to download different versions of the file and compare them to see what was changed. This greater transparency is particularly useful when you’re trying to identify when an error was introduced into the file. Unlimited file versioning allows for even greater transparency, as you’ll have the granularity and historical depth needed to assess the full picture of what happened, and when. 

2. Improved Efficiency and Efficacy When Working with Files

On average it takes a human being 23 minutes to recover focus following an interruption. That interruption may come from something related to their job like a manager asking for an update on a project or, it can come from something clerical and preventable such as a need to save a new version of a file. With automated file version control from a backup provider users can remain focused and productive. Since the creation of file versions is standardized and centralized, your team will be able to focus on their jobs while maintaining security best-practice..

3. Better Data Protection

Humans are unpredictable. We forget things. We click the wrong button. These realities all create problems for data protection. Luckily, these problems can all be addressed by strong version control in a backup solution. Automatically making new versions every time a change occurs to a file, means that something as “simple” as human error can never result in a lost version of a file.

This automation coupled with the fact  that it’s possible to keep multiple versions of your files on a backup provider’s cloud, improves your data resiliency efforts. When a natural disaster wipes employee’s devices, a device fails unexpectedly, or a user makes a mistake, users can quickly roll back to a previous version of the file and get back to work. 

File versioning also helps in the case of ransomware . With a strong version history, it’s simple to restore an uninfected version of a ransomed file from your provider’s cloud after removing the ransomware.

Unlimited file versioning is particularly useful when dealing with malware infection, as you can be incredibly specific when restoring a file. Whether you need to restore a file version from fifteen minutes ago or a version from the prior year (depending on your provider’s version interval), you can do so with unlimited file versioning. 

Choose CrashPlan for Endpoint Backup Solutions With Unlimited File Versioning

At CrashPlan, we’re proud to offer endpoint backup solutions with unlimited file control versioning. Since our endpoint backup solutions automatically collect and secure your files every fifteen minutes, you can significantly reduce the risk of lost data and maintain granular file versions. We also use leading security features to protect your data both at rest and in transit.

Learn more about our endpoint backup solutions with unlimited file versioning today. If you’d like to try our endpoint backup solutions, please sign up for our free trial .

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10 Reasons Why Switching to Codestone’s Managed Service Desk Support Is the Strategic Move Your Business Needs

Choosing the right Managed Service Provider (MSP) is vital to maintaining operational efficiency in a crowded IT landscape. For organisations aiming to stay competitive, aligning with an MSP that goes beyond just meeting IT needs is essential. Codestone’s CloudCare Managed Service Desk Support is designed to do just that. Here’s why switching to Codestone’s CloudCare could be the transformative move your organisation needs.

1. 24/7 Availability and Support

One of the standout features of Codestone’s CloudCare is its commitment to being always there for you. With 24x7x365 support, your business benefits from a multi-system, multilingual support service that is dedicated to ensuring your IT systems are not only operational but optimised for performance. This constant availability is critical in today’s globalised business environment, where downtime can lead to significant financial losses and reputational damage.

2. Holistic Support

CloudCare offers fully managed IT support. This means that whether you’re outsourcing your entire IT estate or just specific aspects of it, Codestone provides comprehensive support that covers everything from hardware and software management to cloud support and infrastructure optimisation. This holistic approach ensures that all facets of your IT operations are integrated and managed efficiently.

3. Unmatched Flexibility Tailored to Your Needs

Codestone understands that one size fits all can never be applied to IT services.  CloudCare is designed to be both modular and scalable, allowing you to select and combine only the services you require. This flexibility means that as your business grows or your IT needs evolve, CloudCare can easily scale with you. Whether you’re a small business looking for basic support or a large enterprise needing comprehensive IT management, CloudCare can be tailored to meet your specific requirements and budget.

4. Proactive Monitoring and Fully Managed Support

Downtime is more than an inconvenience – it’s an expensive interruption that can affect your bottom line and reputation. CloudCare’s proactive monitoring tackles issues before they escalate. From security threats to system performance glitches, Codestone’s real-time insights and immediate responses keep your IT infrastructure running smoothly, day and night.

5. Not Just Another Faceless Provider

One of the most significant pain points with many MSPs is the impersonal, distant service that clients often receive. Codestone’s CloudCare breaks this mould by emphasising the human element in support services, with a team becoming an extension of your own, providing a personal touch that’s rare in the industry. Codestone’s approach ensures that their team is familiar with your business and its specific needs. This human-centric support not only improves response times but also enhances the quality of the service you receive.  This means that when you need help, you’re not just another ticket in a queue – you’re a valued partner.

6. Award-Winning Expertise and Continuous Improvement

Codestone’s track record speaks for itself. Their award-winning Managed IT Services team is known for delivering outstanding quality and innovation in IT support. Codestone’s expertise is backed by market-leading accreditations, as well as key vendor partnerships that ensure you have access to the best tools and technologies available.

But Codestone doesn’t rest on its laurels. They are committed to continuous improvement, regularly innovating and exploring new solutions such as Artificial Intelligence, Self-Service, and next-generation technologies. This forward-thinking approach ensures that your IT support services are not only effective today but are also future-proofed against the challenges of tomorrow.

7. ITSM Tool Agnostic

Flexibility extends beyond just the services offered. Codestone’s CloudCare IT Support is IT Service Management (ITSM) tool agnostic, meaning it can work with whatever tools your organisation is currently using. This adaptability eliminates the need for you to change systems or processes to fit their model. Instead, Codestone integrates seamlessly with your existing tools, reducing friction during the transition and ensuring that you continue to operate efficiently.

8. Empowering Your Team With Transparency

IT support is about more than just fixing problems – it’s also about empowering your business to make informed decisions. Codestone’s CloudCare includes a wide range of services and educational content designed to help you better understand and utilise your IT systems. Additionally, the CloudCare Support Portal provides easy access to real-time monitoring, support tickets, and key reports. This transparency and access to information allow you to stay informed about your IT infrastructure’s performance and make data-driven decisions. CloudCare’s adoption reporting also helps you drive user adoption by providing a comprehensive analysis of how your systems are being used, ensuring that your investments in technology are fully realised.

9. Cost-Effective Solutions that Drive Business Success

Cost is a pivotal factor in selecting an MSP, and Codestone offers a solution that balances affordability with excellence. Opting for Codestone’s Managed Service Desk support could be a more economical choice than managing an internal team. Think of it: round-the-clock support, access to top-tier expertise, and flexible service scaling—all without breaking the bank.

By outsourcing routine IT management to Codestone, your internal teams can shift their focus from daily IT hassles to strategic projects that propel business growth. This shift doesn’t just streamline your operations; it sets the stage for long-term success and operational efficiency.

10. Pioneering IT Solutions

Codestone isn’t about maintaining the status quo. Instead, they’re at the forefront of IT innovation, perpetually seeking novel ways to deliver value. Whether it’s through harnessing Artificial Intelligence, developing self-service tools, or integrating the latest technological advancements, Codestone stands out as a leader in IT evolution. Their commitment to cutting-edge services ensures that your organisation remains competitive, agile, and ever-ready to adapt to new technological shifts.

Making the Best Decision for Your IT Support

Switching to Codestone’s CloudCare Managed Service Desk Support is more than a service change; it’s a strategic move. By optimising and securing your IT infrastructure, CloudCare helps your business stay ahead and achieve lasting success.

In a competitive landscape, the right IT support can be a game-changer. Codestone’s CloudCare is designed to be that change, providing the comprehensive, tailored services your organisation needs to thrive. Make the strategic move today and see the difference that Codestone can make for your business.

We should be talking. It will be worth it.

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Cathay Pacific Airbus A350 engine part failure: What you need to know

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Co-sleeping with your pet can be good for your bond but not for you. Here's when you might need a sleep divorce.

• Cuddling a pet can give you a sense of comfort and security.
• Sleeping with pets can have its benefits, but it also has drawbacks.
• If your pet keeps waking you at night, you could move them off the bed but still stay in your room.

If you've been scrolling through social media lately, you've probably seen videos of people letting pets sleep in their beds. I admit it: my dogs sleep with me, too.

In one video, creator Johnathan Lower demonstrates how he has to twist his body into uncomfortable positions so as not to disturb his Golden Retriever, who is soundly asleep next to him. The video shows his dog hogging the blanket, breathing in his ear, and blocking his partner from touching him.

The most relatable moment for me is Lower waking up alone and wondering where his dog went. Sharing your bed with a pet is kind of like being an amateur contortionist, but it can also be a good bonding experience .

Given the importance of sleep for overall health and well-being, you might be wondering if having pets in the bedroom is a good idea. We asked a sleep expert and a veterinarian about the benefits and drawbacks of co-sleeping with pets and how to decide if you need a "sleep divorce" from your beloved companion.

Co-sleeping with a pet has advantages

Cuddling with a pet can provide a sense of comfort and security. So, it's only natural that you'd want to extend these intimate moments by allowing your pet to sleep in your bed.

Research shows that co-sleeping with pets can have a positive or neutral effect on sleep quality . And because pets thrive on having a routine, they might even encourage you to develop a consistent sleep schedule.

"Co-sleeping with a pet can help with anxiety and stress levels, which could help you sleep better ," Shelby Harris , director of sleep health at Sleepopolis, told Business Insider. If you live alone or struggle with nightmares, having a pet nearby can be a source of emotional support and companionship.

Since animals tend to give off heat while sleeping and their body temperature is higher than ours, dogs, in particular, can make your bed feel warm and cozy , Amy Attas, a veterinarian and founder of New York-based practice City Pets, told BI. In addition, people with cats may find it soothing to listen to the sound of purring.

Pets can also interrupt your sleep

While co-sleeping may enhance the human-pet bond, pets can disturb your sleep by moving around, snoring, or vocalizing in their sleep, Harris said. A recent study found that co-sleeping with pets can contribute to poorer sleep quality and more severe insomnia .

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Given their exceptional hearing, pets may be awakened by sounds that people can't hear, causing sleep disruptions. "Pets who are startled in their sleep may have an aggressive response toward the individual in the bed," Attas said.

Pets can get sick in the middle of the night and vomit or have diarrhea in bed. "Indoor cats can track soiled kitty litter onto sheets and pillowcases in close contact with a person's face," Attas said. Older pets or those with kidney disease may be prone to urinary incontinence.

If your pet goes outdoors, they can introduce dirt and bacteria into your bedroom, affecting the cleanliness of your bed and your health, Harris said. Breathing in pet dander can worsen allergy and asthma symptoms.

The type of pet matters, and where they sleep

Once you've fallen asleep, staying asleep can be challenging with larger pets or multiple pets taking up space. On the other hand, a large breed dog might have a calmer temperament than a smaller or younger dog who gets the zoomies or a cat who enjoys playing at night.

As nocturnal animals, cats tend to be more active at night and in the early morning, which can cause more frequent sleep disturbances, Harris said. In contrast, dogs tend to be more adaptable, eventually mirroring their owner's sleep schedule.

During the night, cats may change locations , even sleeping on top of their owners' heads or pillows. Likewise, "dogs tend to reposition themselves more as they relax, which can be disruptive," Attas said.

Some pets, because of age or mobility issues , may require help with getting on or off the bed overnight. They may also need to stretch or change positions to relieve pressure on their joints.

How to improve sleep when co-sleeping with a pet

Having a consistent bedtime and wake-up time can be helpful and keep your pet from getting too excited at night. "Make sure your pet is well-exercised and has gone to the bathroom to minimize any night-time activity," Harris said.

If you're sharing a bed with your pet, "ensure your bed is large enough to fit you and your pets comfortably," Attas said. You may wish to purchase a waterproof pad to protect your mattress from urine or vomit.

Both experts recommended r egular grooming and cleaning to keep your bedroom hygienic and reduce exposure to allergens and parasites. For extra protection against pet dander, consider buying an air purifier with a HEPA filter.

Attas said that in addition to training your pet to discontinue disruptive behaviors, you can also use an eye mask and a white noise machine to reduce noise from pets. She also suggested putting your pet's favorite bed on top of your bed to encourage them to stay in one place.

If all else fails, a good compromise would be letting your pet sleep in the same room but not in your bed. This setup can help you enjoy your pet's companionship while allowing you to have a restful sleep environment, Harris said.

What to do if it's time for a sleep divorce

Helping your pet transition out of your bed and into his or her own space requires patience and consistency. If your pet is accustomed to sleeping on a spacious and comfortable mattress , be sure to invest in a high-quality pet bed and introduce it to your pet on your bed, initially, Attas said.

Place the bed close to where your pet had been sleeping, along with your pet's favorite toys and blankets. Then, sit with your pet on or near the new bed and lie down close to it.

Pair commands like sit or down with "positive reinforcement such as a delicious treat to encourage your pet to spend time on the new bed," Attas said. "Provide additional reinforcement if the pet goes to the new bed on their own."

If they jump on your bed, you can gently nudge them off or redirect them to their new bed using a treat. You can also consult with your veterinarian about ways to ease your dog's anxiety during the transition.

Nandini Maharaj is a freelance writer covering health, wellness, identity, and relationships. She holds a master's degree in counseling and a doctorate in public health.

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