Business Plan: The Roadmap for your Business.

It's not always the primary thing to establish when starting a business. Business Plans corresponds to a developing business but it would serve as well as foundation for any future endeavor for the business development plan.

Every business has to start and go somewhere, expand, hire people, acquire suppliers, contracts, forecasts, marketing plan, sales plan, identifying competition, etc.. To understand its importance, most of the time businesses would make a business plan and then just park it, it is subject to revisit may be on an annual basis just to track and see where your business have been thru since its incorporation.

This may sound tedious and time consuming at first but it would reap it rewards in the long-run for the bloodline of your business.

1. To help you with critical situations and accept if in line with your core-values. It's not always profit and sales that you'd need to empower in your line of business, you should also focus if that transaction in front of you is in line with your company's core values and principles. It's not always CSR who'd take this place, it's also how your customers perceive your business and also your brand. What is your business known for, what are your principles and culture inside your organization that you should consider before taking any deals.
2. To avoid bad decisions. A lot of businesses fail because of recurring errors. Once Enrique Razon said in an interview, "doing business entails a lot of risks. Committing mistakes are an essential part of doing business and it also a loss that comes with it. But, if you're right about the decision, win big, and make up for that mistake."
3. You may present this to future investors and partners. It's not always your marketing or sales who'd do the trick to invite potential investors and partners. The business plan would also serve as your pitchbook. What it is that you want to accomplish, what are your objectives and returns you are going to promise to your financiers, how would you keep up with credit, etc. Those questions are really crucial especially when you are going to onboard a partner or an investor.

Understanding a business plan is very important to you and your organization. It's not always profit and loss but to also your "why" that you are doing what you're doing today and in a way to at best serve your customers.