When is the Right Time to Create a Business Plan

by Lois Leonard

1 min read

Prior to leaving that 9-to-5 job and regular paycheck to become self-employed, create a business plan. It will keep you focused on what needs to be accomplished each week once those regular payments stop. Without a plan, you might be shocked to find out how much time goes by while you attempt to get your business going.

You are Seeking Funding or a Business Loan

If you want someone to give you money for your business, you will need to show them a business plan outlining how you plan to use the money and when you will be able to pay that investor or lender back.

You are Searching for a Partner or Co-Founder

If you’re looking for a business partner to come on board and potentially give up their regular job, you will need to show them your vision, action plan and, most importantly, what’s in it for them.

You are Hiring Talent

While you may not necessarily want to show your business plan to new or potential employees, creating one will help you decide how many people you need, what they will be doing and what fits within your startup budget. The business plan essentially helps you match the type and amount of people you need to each strategic objective you have developed for your company.

You are Focusing on Continuity Planning

Many business owners only think short-term, hoping they can develop a strategy that gets them through the first year or so. From the beginning, a founder should also start developing the long-term vision and approach to the company. A business plan prompts you to think about your business in terms of continuity planning and address any potential risks and hazards.

You are Experiencing Slow Growth & Need to Change It Up

Even when you have an established business, it’s good to periodically revisit your business plan, especially if you are experiencing a revenue plateau and looking to stimulate new growth. Conducting new research and updating your plan could provide answers on a new direction.

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