“If You Fail to Plan, You Are Planning to Fail” as the popular Benjamin Franklin saying goes. A business idea is NOT a business plan.
- “Nearly 70% of business owners who have been there and done that recommend writing a business plan before you start a business (QuickBooks survey, 2023)”.
- Businesses with a business plan grow 30% faster than those without.
Therefore, it is without a doubt, whether you're an ambitious entrepreneur or an SME business owner, you need a business plan. A business plan helps guide companies (especially for small or growing companies) and gives investors and lenders the information they need to decide whether or not to fund your company. It can provide important details such as market size, competition and target audience.
5 reasons why you need a business plan
1. To prove that you’re serious about your business
Once you start writing your business plan and putting words to paper, it shows commitment to employees, investors, partners and most importantly, YOURSELF. It will help you steer your business as you start and grow.
2. It will help you to reach business milestones
A formal business plan allows you to compare actual operational results versus the business plan itself. In this way, it allows you to clearly see whether you have achieved your strategic, financial, and operational goals
3. It can help you get funding and raise capital
A formal business plan is the basis for financing proposals. It can provide answers such as: Is there a need for this product or service? What are the financial projections? What is the market size? These are common answers to investors; who might potentially be interested in your business.
4. To better understand your competition and customers
Creating the business plan forces you to do market research and competitor analysis. Is the market growing or shrinking? Who is your target audience? It is a great way to know whether there is a market for your product or service and how to go about selling and promoting it.
5. Reduce the risk of
What to include in your business plan?
Here are the 10 most common steps in a business plan:
1. Executive summary
2. A company overview and description (Mission statement, history and objectives)
3. The problem and your solution
4. Market Analysis: Market size and segments
5. Competitor Analysis
6. Product or service offerings
7. Marketing strategy and sales plan
8. Organisation and Management
9. Milestones and metrics
10. Financial Forecasts and financing
Serious about starting your business? Then, make sure you write out a clear plan to help instill confidence and set you up for success.
Lastly, a big challenge entrepreneurs face is financing and banking. As small business owners and startups, every little fee adds up and can massively impact the business. For a different option, consider TranSwap. TranSwap’s multi-currency global bank account allows you to protect your profit and expand strategically.
Why should you open a Transwap Multi-currency Global Account?
- Centralised Account: Access and manage your business finances on the go. Move money and track transactions with TranSwap.
- Global Treasury: Smoothly manage cash flow and bolster your competitive advantage in local markets by paying and receiving money in local currency.
- Zero Hidden Fees: Get access to free virtual accounts in Singapore, the United Kingdom, the United States, the European Union, Hong Kong, Indonesia and more. Hold up to 34 currencies in your global account for payments and collections.
- Local Support: Receive full support from our local success teams at every step of the process.
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