Businesses at any stage in their life cycle can benefit heavily from creating and implementing an effective business plan.
Not only is a business plan there to map out your goals and aspirations, but also to identify any financial risks and operational challenges you may encounter.
According to research conducted by Fundsquire, 20% of small businesses fail in the first year, and around 60% fail within the first three years of trading, while CB Insights discovered:
- 29% fail because they ran out of cash
- 18% fail because of pricing and cost issues
- 17% fail due to a lack of a business model
- 14% fail because of poor marketing.
A business plan will usually outline strategies to avoid all of these issues – that’s why it’s important to create a thorough plan as early as possible in your business journey.
Here are some things you should include and what your business plan can do for you.
>> Download our ‘Effective Business Plan’ Guide
The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.