There is a misconception going around when it comes to business plans. People say that they only need a business plan when they need to attract financiers or other companies to do business with. Yes, businesses can operate without a plan but itâ€™s like going sailing without a map and a compass.
Business plans arenâ€™t just money raising tools, they are an important part of every business. And having one is just plain common sense. Imagine yourself talking to an important business person curious about your martial arts school. He wants to do business with you and you get excited with all of the possibilities this venture might bring you, he then asks â€œCan I see your business plan?â€ Without a plan, what would you do in that situation?
Business plans do attract investors, but they also attract the right employees. If you want to expand your school or simply make it a better one, hiring the best employees should be your top priority. An example is what Marissa Mayer has done with Yahoo. To get Yahoo out of its rut, she courted top talent and recruited them. Now Yahoo is enjoying a fresh image change and a continuing rise in stock prices.
Aside from making a business plan for the sake of having one, a plan allows you to see your business in an unemotional way. Think of it as viewing your business from another perspective. Itâ€™s like watching a chess match or a martial arts sparring. With you on the stands, youâ€™ll have a clearer view on whatâ€™s happening. This will ultimately help you in creating better decisions and will also keep you from making obvious mistakes. If you have a clear business plan, you can see if a business will fail right from the start. For making decisions, a business plan should clearly state all of the needed information like goals, resources, target markets, location, andÂ a lot more. If you can see all the aspects of your business written in paper, you can adjust anything that can make or break your business. An example is that your goal is to have 1000 additional students by next year but your budget for marketing is only 2% of your capital. With this information, you can adjust your budget to reach your target goal.
Your business plan will also act as your guide and gauge. Obviously plans guide us to what direction we should go to. It will tell you if your way off your mark and it will force you to go back on track. As a gauge, it will monitor your successes and your failures and compare it to what has been previously written.
Another benefit of a business plan is that it keeps all the people in your organization on the same page. Itâ€™s highly important for martial arts masters to share your schoolâ€™s vision to your employees and partners. Even if you donâ€™t have business partners, you can show your business plan to your friends and family. Letting them know what youâ€™re up to can be valuable in terms of support and additional help if needed.