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The importance of a formal business plan

On Behalf of | Feb 5, 2020 | Business Law

New York entrepreneurs may feel as if they don’t need to create a formal business plan to be successful. However, a 2017 survey found that companies that had a business plan were twice as likely to succeed as those that didn’t. Creating such a plan can help an organization identify what it wants to do and how it will achieve its goals. It can also help companies better understand the challenges that they will likely face and how to overcome them.

Having a clear plan can make it easier for business owners to make decisions that are in the best interests of their companies both now and in the long-term. It can also make it easier to objectively determine if the organization has been successful in achieving its goals. If not, a company may have time to make changes before its failure to live up to expectations causes significant damage.

Creating a tangible business plan may make it easier to obtain financing or to sell a company. Lenders will want to see that a company has a tangible plan to generate revenue to repay a loan. Likewise, investors will want to see a plan as to how they will obtain a return on their investment. When it comes time to sell a business, a written plan can act as a blueprint for a buyer to run the company successfully.

Creating a business plan may enable a company to attract quality talent, obtain financing or be sold at the top of its price range. A business law attorney may be able to help a company owner prepare a business plan that meets its needs.