Why is it important to formulate a business plan - Business Continuity Planning: Why It's Important - IBHS

The completed business plan communicates your company's ideas and message to employees, outside directors, lenders, and potential investors. A business plan helps you do that in an organized, credible manner. Also, the process of planning helps you determine if your vision is realistic, and tells you what you need to do in order to achieve it.

What Is a Business Plan? - Why Are Business Plans Important?

Business Plan as Motivation Tool. The development of your business plan is one of the best ways for you to communicate how well you understand your business and describe your vision of your business.

Without proper planning, it becomes impossible for you to get all of your employees reading off the same page of the book and generating energy through high levels of team work. It is impossible to motivate people when they research proposal llb not know where they are going or what they are trying to achieve.

Business Plan as Management Development Tool.

Putting together your business plan will help you develop as a manager because it can give you practice in thinking and figuring out problems about competitive conditions, promotional opportunities, and situations that are or may be beneficial or harmful to your business. What is the timeline for bringing new products and services to market? What makes your products or services different?

Are there competitive advantages compared with offerings from other competitors? Are there competitive disadvantages you will need to overcome?

And if so, how? Is price an issue? Will your operating costs be low enough to allow a reasonable profit margin?

What is a Mission Statement?

How will you acquire your products? Are you the manufacturer? Do you assemble products using components provided by others? Do you purchase products from suppliers or wholesalers?

If your business takes off, is a steady supply of products available? But it may not fully cover some of the peripheral damages from an event, like loss of customers, loss of market share, or setbacks in development or release of a new product. Consult with your insurance agent to understand what is and is not covered under your policy. Your fixed costs will continue after an event, whether or not you are open for business. The faster you can return your operations to normal, the more likely you will recover from the event successfully.

How to Write a Business Plan (with Sample Business Plans)

With so much at stake, your company cannot afford to NOT have a plan. Literature review xls details steps to be taken before, during and after an event to maintain the financial viability of an organization.

Disaster recovery is a reactive plan for responding after an event. It deals with the safety and restoration of critical personnel, locations, and operational procedures after a disaster, and is a part of business continuity planning. It details how to get businesses back on track after a disruption — in the most thoughtful way possible. Think Again Twenty-five percent of businesses do not reopen following a major event.