Smart Entrepreneurs Navigate With a Business Plan

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If you search online, you’ll find lots of articles talking about whether business planning is good or bad.

Some people say everyone starting a business needs a plan, while others say planning is a waste of time, including a few seasoned business  owners who matter-of-factly claim they’ve never had a business plan

This can be confusing for business owners.

Nobody wants to waste time if a business plan is not needed, but there are real benefits to having a plan.

Here’s the truth: Most people who say they don’t have a business plan actually do have some sort of plan, it’s just that they don’t think of it- or refer to it as a formal business plan.

If a business is thriving and profitable, it’s because there’s a plan behind it.

In the past, people could get away without a plan, like riding scooters on slow trains. But things are different now.

Trains are faster, and business is more complicated.

Nowadays, smart rail workers wouldn’t dream of going without a schedule, and entrepreneurs shouldn’t take risks without a plan either.

Having a business plan helps you in many ways:

  1. It shows if your business will make money or lose it.
  2. It helps you understand your money flow and when you might need to borrow.
  3. It lets you see risks and how to avoid them.
  4. It helps you come up with a plan to market your products.
  5. It helps you make realistic sales predictions using market info.
  6. It shows your business expenses clearly.
  7. It helps you see if your business meets your personal needs and is worth your time and money.

In today’s complex market, you need a plan before starting or growing a business.

Smart pilots use maps, and smart entrepreneurs use business plans.

Many failed businesses didn’t have a plan, so don’t be fooled into thinking you don’t need one.

If you’re putting serious money into your business, you definitely need a plan. If you can afford to lose your investment, you might as well buy lottery tickets.

But if you want to succeed, having a business plan makes you stronger.

Hussein Boffu runs a consultancy provides business planning, financial forecasts, market research reports, expert analysis and consulting for entrepreneurs and business owners. Reach out to him via email at hussein.boffu@tanzaniapetroleum.com or by calling, texting, or WhatsApp at +255(0)655376543.