Knowing the importances of a business plan is critical for entrepreneurs. There is a common misconception that the primary purpose of a business plan is to have your business in writing to present to lenders. Because of this, some small businesses do not develop a proper business plan. This is a large reason for 60% of business failing in the first five years.
It is very important for a company to develop an effective business plan. As the owner of the company, you must have a direction you want to lead the business. A leader without direction is not a leader, they are lost. In order to create and develop a successful business, one must have clear vision, and an affective plan.