There are 5 good reasons to explain why a business plan is important for a company:

• To test the feasibility of the idea.

With a business plan an entrepreneurs can understand if the his/her idea is feasible. It is like a “safety net”, helping the entrepreneurs to save a lot of money and time.

• More chance for success.

Many elements, like broad operational and financial objectives, as well as budgeting and market planning, usually are not sufficiently considered by entrepreneurs. Writing a business plan let you think about these elements, helping you in the startup phase.

• Finding and secure funding.

To get financing from banks is impossible without a well-developed business plan. It is very difficult to find a business that can take-off without external financing: having a business plan will give you better chance of getting money to starting your business and/or expanding it.

• More effective and manageable business planning.

A well-developed business plan is important also for people who need to strengthen their business. The companies’ original business plan need to be modified and updated often, since the market is dynamic and it changes quickly. A business plan review is also useful to understand which goals have been accomplished and which not, giving the chance to find the best solution of each problem.

• Finding investors.

A well-developed business plan will make investors (venture capitalists, business angles, etc) interested to your business idea.

Writing a business plan is time-consuming, but it's essential if you want to have a successful business that is going to survive the startup phase. BMC Model will let you save time and focus on the essential elements of your business idea.