It is so shocking to discover that most business in Africa do not have a business plan. They are just surviving on day to day basis; some business owners have actually questioned why they need a business plan since their business is moving well. The point is that there are so

many benefits of having a business plan.

Today, we are going to see reasons why it is extremely important that you write a business plan for your business, no matter how small it is,
Having a Business Plan Is the Key to the Success of your business,

The business plan is the blueprint for your business. If you want to build a house, would you just walk over to an empty plot of land and just start digging foundation anyhow and start fixing blocks without having a plan of the house, without knowing how many rooms, is it upstairs or bungalow?

The point is that even if you just start digging and setting up a building without a plan, sure you will have a structure there but will it stand the test of time? Starting a business without a business plan is just as foolish.

Yet unlike a house, a business isn’t static. We often make the mistake of thinking of a business plan as a single document that you just put together when you’re first starting out and then set aside. Something to check off the to-do list and be done with.

But in actuality, the business plan for any business will change over time as the business develops, and any particular business may have multiple business plans as its objectives change.

In the growth phase an updated business plan is useful for forecasting or raising additional capital for expansion, and if you decide to sell or close the business the business plan can include strategies and timelines for the transfer to new ownership or dissolution of the company.

Let us now consider some good practical reasons why you should write a business plan when starting a new business or for your existing business:

1 To test the feasibility of your business idea.

Writing a business plan is the best way to test whether or not an idea for starting a business is feasible, other than going out and doing it. In this sense, the business plan is your safety net; writing a business plan can save you a great deal of time and money if working through the business plan reveals that your business idea is untenable.

Writing a business plan will ensure that you pay attention to both the broad operational and financial objectives of your new business and the details, such as budgeting and market planning.

Taking the time to work through the process of writing a business plan will make for a smoother startup period and fewer unforeseen problems as your business becomes established.

Often, an idea for starting a business is discarded at the marketing analysis or competitive analysis stage, where you discover you don’t have a market for your business. Thereby freeing you to move on to a new (and better) idea.

2 To secure funding, through investors or bank loans.

You’re going to need both operating and startup capital to start a new business and you have no hope of getting any money from established financial institutions such as banks without a well developed business plan.

Check all the startups in Africa that are getting seed investment and funding from investors, they all have a good structure on ground, and you can’t have good structure if there is no business plan.

The point is that nobody will put his money into your business if you are unable to clearly tell him where the business is heading to. Its only through the business plan you can do that

Whether you want to shop your business to venture capitalists, or attract angel investors, you need to have a solid business plan. A presentation may arouse their interest, but they’ll need a well-written document they can take away and study before they’ll be prepared to make any investment commitment
Be prepared for your business plan to be scrutinized; both venture capitalists and angel investors will want to conduct ........
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