The Importance of Writing A Business Plan & Its History

December is National Write a Business Plan month which is a fitting time for entrepreneurs to be inspired to put a business plan in motion to create the future they desire. 

On average the 500+ million business owners around the world have at least two to three competitors, so writing or revisiting your business plan before the new year can put you at an advantage above your competitors, help you obtain funding, and have a strategy for reaching customers. Whether your business is new or old, having a plan to check in on and stay on track helps set up your business for success. (Check out our post When Did You Last Look At Your Business Plan?)

History – The First Business Plan

According to the National Today website, “Researchers theorize that the oldest historical appearance of writing business plans that shaped the present style of business plan writing today dates back to the 19th century in France. The coal-mining industry in France at the time possessed underpinnings of the modern characteristics of writing business plans, including outlining their medium- and long-term goals, occasional reviews of their business strategies and returns, and new milestones for the coming market year.”

The theory goes on to show that business plans were then adopted throughout Europe and the US due to the quick pace of industrialization in the late 19th to early 20th centuries and state-owned and public corporations  made business planning part of their budgeting process and business plan writing was ultimately adopted by private organizations after seeing the success of its application in government-owned organizations. Today, a business plan is the backbone of any business. 

Why It’s Important To Write A Business Plan

Businesses need a business plan to get the ideas and dreams set onto a roadmap for the future. It makes the business real and helps you break down the plan into manageable steps. Having a business plan is a basic requirement to secure funding from banks and investors. One of the most powerful benefits of the business plan is that it serves as your compass so you’re never lost. Oftentimes entrepreneurs and business owners can have shiny object syndrome and get distracted by new things. However, the business plan helps guide us and keep us on the path that will ultimately be for the benefit of the business. 

The month of December may seem like a crazy time of the year to focus on the business plan but with so many events that compete for our time and attention this month, focusing on the business plan during this time can help entrepreneurs from feeling stranded in the new year and puts the new year into perspective.

Leverage The Month For Branding

Why not leverage National Write a Business Plan Month for branding a new business idea. If you post about the fact that you’re planning out a new business idea for next year, it creates interest and serves as a source of branding for your business idea. It may also create a market from those who may follow your progress through the process. Plus, it serves as accountability and sets expectations from others once you start telling others about your goals or progress.

We’re Here To Help You

As you prepare your business plan, know that the knowledgeable team at Chase Law Group, P.C. is always available to answer questions and provide consultation.  Give us a call at (310) 545-7700 or contact us here and set up a consultation today.