5 Reasons Why You Should Write A Business Plan

Why write a business plan? Just for the finance? No. We have 5 good reasons how business plan could help you shape future of your business success.
Developing strategy takes time and resources. It requires the timeand commitment of some of the most highly paid and highly experiencedpeople in your organization. So, if your team isn’t willing to investwhat is needed, I recommend that you don’t do it. Poor planning is often worse than no planning at all.

5 Reasons Why You Should Write A Business Plan

So, why do you need a strategy? Why take time for planning? There are many reasons. But the Drivers Model focuses on five in particular.

Must read: Why a Startup Business Plan Is Still Worth Writing

1) To set direction and priorities:

First and foremost, you need a strategy because it sets the direction and establishes priorities for your organization. It defines yourorganization’s view of success and prioritizes the activities that willmake this view your reality. The strategy will help your people knowwhat they should be working on, and what they should be working onfirst.

Without a clearly defined and articulated strategy, you may very well find that your priority initiatives—the ones that will drive thehighest successare being given secondary treatment.
Also read: 10 Mistakes to Avoid When Naming Your Business

2) To get everyone on the same page:

If you find that you have departments working to achieve different aims, or going in different directions, you need a strategy.
Once you define your strategic direction, you can get operations,sales, marketing, administration, manufacturing, and all otherdepartments moving together to achieve the organization’s goals.

3) To simplify decision-making:

If your leadership team has trouble saying no to new ideas orpotential initiatives, you need a strategy. Why? Your strategy will have already prioritized the activities necessary for success. Prioritiesmake it easier to say no to distracting initiatives.
Also read: 8 Tips To Develop a Successful Business Plan

4) To drive alignment:

Many organizations have hard-working people putting their bestefforts into areas that have little to no effect on strategic success.They’re essentially majoring in the minors—because their activitiesaren’t aligned with the priorities. Your strategy serves as the vehiclefor answering the question, “How can we better align all our resourcesto maximize our strategic success?”

5) To communicate the message:

Many leaders walk around with a virtual strategy locked in theirheads—they know where their organization needs to be and the keyactivities that will get it there. Unfortunately, the strategy isn’tdown on paper and hasn’t been communicated thoroughly. As a result, fewpeople are acting on it.
When your staff, suppliers, and even customers know where you’re going,you allow even greater opportunities for people to help you maximizeyour success in getting there.

Related: 7 Tips to Writing a Perfect Business Plan

Once you recognize the need to plan, you now have the role ofbecoming the catalyst: for facilitating the buy-in and commitment ofyour leadership team and the rest of your organization. I’ve found thatvery few executives truly understand how to maximize their role infacilitating strategy. This chapter is focused on you, the leader of the organization, and on the vital role you play in facilitating strategythroughout your organization. Let’s get started.

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