Lets understand what is business plan before understanding the advantages of it, any business which is either starting or planning for expansion needs to have clarity on the results of where to reach, how to reach and getting clarity on the infusement of funds.
Business cannot be just done for the sake of doing business so as we all know that before starting a business we need to have the details of problems we are solving and how our solution can being in revenue.
It’s not necessary to have business plan written by experts as they will not be experts in writing but not in implementation nor they will have knowledge of the industry. Writing statements of why know? Or writing SWOT analysis is not going to help as these are written documents to which ground reality is completely different.
Every business before venturing out needs to have clarity of when to fail fast i.e. when they need to shut down the business if it does not scale over a specified period. This not only helps in saving funds but also helps in time and effort, when you hit rock no point in drilling into it rather than abandoning and finding other place
The foremost advantage of having business plan is in understanding the financials and getting clarity on what’s the minimum that needs to be done to be alive. It also provides blue print on what is best possible and what are worst situations.
The financials will provide complete aspects of how much funds are required and where to use and when to use and also provides clarity on what’s the minimum business that needs to be generated to survive the 1000 day golden rule
The other advantages of business plan help you in understanding the target segment which you are planning to reach, what is there market size and who are the current players and what are they offering and how you can reach and create a place for yourself in the market.
Beyond a particular point business plan will be of no help as end of the its all about implementation and execution. But still before doing it you need to know for why you are doing it and what will be result of it. Having this is like having won half battle.