Do Entrepreneurs Need a Business Plan to Be Successful?

In: Business and Management

Submitted By sweg123
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Do entrepreneurs need a business plan to be successful?

No, as a person can successfully run a business without one. However a business needs a set direction and the person running it has to know what they are doing 100% of the time, if a person is capable of keeping a whole business under control and on the right track then they do not need a business plan.
When starting a business there are countless things that can go wrong and lots of different directions your business could take. Without a plan people don’t know where they are going, what they want to do or what they want their business to be. Doing a business plan allows someone to find out who their target market is and how popular their product or service will be with that group. It will also allow people to see what their competition is and how well they are doing. For example someone who wanted to open up a butchers could rent a shop buy their product and open their doors to find out the majority of the town they opened up shop in is vegetarian. The butcher who made a business plan already knew that that was a vegetarian town and located a town just a couple of miles away that has an annual meat lovers fair.
A business plan will not allow you to be prepared for every mishap that will happen along the way but it will enable you to plan for problems that you know will or are very likely to happen. For example a cafe that has just opened on the seafront plans to buy extra ice cream for the hot summer days but when it turns to winter, when ice cream is less popular, they buy more hot chocolate.
A business plan also impresses banks and other financial providers that you might need to go to get a loan to start up your business. Banks are more likely to give you a loan if you have a structured plan that shows your forecasted incomes and outcomes than if you waltz in and ask for some money to start a shop.…...

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