Why a business needs a business plan

Business planning may be arduous, but skipping this step can leave you uninformed about your firm's place in the market. The type of information gathered during the planning process can help you foresee potential risks and develop strategies for dealing with them before they occur. Many owners return to their business plan even after their firm is up and running to help them refocus and chart a path for the future.

In addition, a business plan is a tool of communication. Banks and investors will look to your plan for evidence that your company can succeed. Your partners and employees will look at it as a blueprint for the future, bringing together disparate elements such as marketing, sales and operations into one document.

Here are the top reasons a business needs a plan: