Importance of a Business Planning

1. Illustrating your business vision
   In most cases, a business plan is created to explain and illustrate the vision you have for your business, and to persuade others to help you achieve that vision. To accomplish this, you will need to demonstrate your plan on paper, proving that you have a firm visualisation of what your business is going to be. It needs to convince others that your business concept can be successful, and that you possess the expertise, either alone or collectively to assure that it will be both successful and profitable.
2. Lead you to focus on what you should be doing
   While it is obviously important to be able to present your business concept in a way that allows others to understand quickly and precisely what you wish to conduct, you also need to develop a business plan for your own use. The process of developing your business plan will require you to focus exactly on what you are trying to achieve, precisely where you want to be going, and exactly how you plan to get there. It will force you to detail out the many expenses involved to open your business, the projected sales and monthly expenses of actual operation, and the volume of business you will need to generate to meet your obligations.
3. Business plan is a good source for investors to look at
   Most potential investors will want to see a business plan before they consider funding your business. Although many businesses are tempted to use their business plans solely for this purpose, a good plan should set the course of a business over its lifespan.
4. As a key role in business resources allocation 
   A business plan plays a key role in allocating resources throughout a business. It is a tool that can help you attract new funds or that you can use as a strategy document. A good business plan reveals how you would use a bank loan or investment you are asking for.
5. Gives an idea at which direction you are now 
   A business plan can be used as a tool to identify where you are now and in which direction you wish your business to grow. A business plan will also ensure that you meet certain key targets and manage business priorities.