The business plan is one of the keys to a successful company. It helps you know where you’re coming from, where you plan to go, and how you will get there. It answers such questions as: How will you identify an opportunity, and what will you do to take advantage of it? What might success look like for you and your business? What kind of resources will you need now and in the future?
Whether you’re writing a business plan because it’s important to your investors or because it helps you get your ducks in a row, going into business with some idea of where you’re going can help you succeed. Here’s what we’ve found.
A Case Study
There are a lot of studies about whether it pays to have a formal workplace plan. At first glance, it seems the Panel Study of Entrepreneurial Dynamics II was just going to reveal more research along those lines. However, these researchers wanted to touch on why entrepreneurs plan; perhaps this context would tell us something about the true benefits of planning. They decided to track a sample of 1,000 entrepreneurs for the duration of six years to look at what startups and founders did to get their businesses off the ground and, more importantly, whether they succeeded. Subjects were separated into groups according to who did and did not write formal plans, but were otherwise as identical as possible.
It turns out that writing a business plan may help – as long as you’re doing it for the right reasons. Typically, those reasons involved situations where challenges are the greatest. For example, if your idea is going to shake up an industry, or you want to begin growing right away, a plan can help you make your workplace dreams a reality. More experienced entrepreneurs who know the market are more likely to plan for exactly this reason.
A well-formulated plan can help you turn a vision into success, and kick-start your business. The early stages of business planning might start with vague ideas, but plans can help turn vague ideas into concrete benchmarks for success. For a business to grow, a plan often is necessary, especially for a business interested in high growth, or that puts innovative ideas out in the world.
What a plan also can do is help your investors feel more confident. A plan shows your important stakeholders that you’re serious about your business, and reassures them that they’re making a good decision. When your investors are confident, your business can grow; better-financed startups are more likely to succeed. Once you’ve overcome the investor hurdle, you can put your resources to work according to plan.
Planning Your Office Space
If your business plan includes figuring out where to do your business, consider renting an office space. executivehub’s rental offices in the Scottsdale area give you room to help you get started with your business plans and to grow when you need to. Get started off right with flexible leasing options, and take advantage of all the amenities we offer for entrepreneurs like you. For more information on what our executive suites can give you, contact us online or at 480.945.8500.