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The importance of a sound business plan

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It’s a sobering fact that 70% of new businesses fail after two to five years in operation. But, with sound business planning, you can significantly increase your chance of succeeding despite these odds.

Proper planning is the key to turning your business vision into reality. A sound and convincing business plan is an entrepreneur's important first step in starting up a profitable business. It's also a prerequisite for getting financing and attracting investors.

The issues involved in producing a plan include profiling competitors to forecasting market development. to the importance of providing financial information.

Since you only get one chance to make a first impression, the written business plan has to presented in a highly accessible format that is clear and concise.

According to the results of PricewaterhouseCoopers Insight survey, businesses that plan for the long term are more than twice as likely to expect improving profits over the coming years. These companies are developing proactive strategies to survive tough times and are assessing their performance against those plans.

Remember, a business plan is a flexible document that will change and grow with your business. It is a road map which will help you chart the best possible course for business success. Businesses don’t plan to fail but failing to plan is risky, especially when the market is uncertain. Now more than ever companies need to be strategic and prepared to survive.

A good business plan should impress potential financial backers by clarifying aims, providing a blueprint for the future of your company and a benchmark against which to measure growth.

Anyone involved in business will, at some point, have to prepare a business plan; whether it is to raise finance, sell a business or develop a specific project. They are very unlikely to support something that is scrappy, untidy and badly written.

There are services that specialize in writing sound business plans for entrepreneurs.

The money that you will spend in outsourcing the writing to a firm that knows the art of crafting a good one,will pay off in spades.

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