To analyze why to need business plan, there is no rule that business plan needs to be made even before you start your company, you can also first run on pilot run see how things are and then you can be more confident of expanding your business.Just having business plan without having done at least the trial run or just building in a big business plan will not be of any use.
Business plan is blue print which determines the way forward for your company, understanding your consumers, understanding your completion, understanding your strengths, giving you clarity as how you need to move forward.
It also helps you in understanding the quantum of risk involved and gives you clarity the kind of risk you are ready to take and for what gains.
It also gives you complete clarity as how the market for your product or service is what are the factors that effect and what factors can bring changes. Having complete research done at least secondary research gives you clar
ity as how many competitors are what they are offering and what is their growth and what’s their business model. It also helps in giving you clarity as what should be your offering what kind of business model you need to work.
It also gives you clarity as to what is the amount of funds you need to go to certain levels and what should be your pricing for the product or service.
It gives you clarity in terms quantum of funding required. It also gives clarity that how well process you are in running the business, it gives clarity as to how serious you are and as leader of the company how good visionary you are, your ability in forecasting and seeing the opportunity.
It also gives you clarity about your marketing plan, what’s the strategy you need to adopt to enter market, which channels you need use to inform about your product to your audience.
It also gives you clarity in terms of cost you will be spending on marketing; it also helps in giving you the cost you will be incurring to reach thousand people.
It also gives you clarity what is the short term goal you need to keep in mind to reach the Big goal.
Last but not the least it helps in attracting investors.