The Importance of Developing a Business Plan

This can be a tricky subject for some of you with smaller or “hobby” businesses because you might not think that your business is big enough to sit down and hash out a business plan. Well I’m here to tell you that no business is too small to have a business plan! That’s right, even if you run a small Etsy shop part-time (like I do), you need a business plan.

The importance of a business plan can be easy to overlook, but if you take the time to jot down even a simple plan it will help keep you focused and on track which will ultimately only help your crafty kingdom grow to it’s full potential. Convincing no? I found a few more convincing reason in this article about how taking the time to develop a business plan can only be beneficial to your business.

• Define your business goals and objectives
• Will help you to identify your target audience
• Enable you to identify the best business model for your business
• Assist with cash flow forecasting
• Enables you to better understand the business sector of your business
• Identify the skills needed to manage and operate your business
• Identify the technology needed to manage and grow your business
• Gain valuable information about your competitors
• Develop your marketing plan
• Identify and develop your branding strategy

Keep in mind that if you have a small business, your craft business plan does not have to be an overwhelmingly long document. It can just be a collection of plans and ideas that help narrow your vision for your business. The full business plan is only really necessary when you go to the bank to request a loan or are approaching investors, this will come down the line. In the meantime, be honest with yourself and write down some ideas for how you want your business to accomplish and what you can realistically accomplish as a one-woman budding business.

Do you have a business plan for your craft business? Do you plan on writing on if you don’t?