If you have a business or are starting a business in Denver, you will undoubtedly get both solicited and unsolicited recommendations about how to effectively run it. One topic that usually arises is that of the business plan: is it necessary or unnecessary to create a business plan for your business? You will get different answers depending on who you ask.
Some people say that you only need to have a detailed, written business plan if you are soliciting funds from a bank, investors, joint ventures, etc. The thought is that any type of investor will want to know the risks, projected financial gains/losses, extended outlook and more before dumping money into your business.
While this is true, even if you are not actively seeing outside funds, it makes sense to have your business goals set up so you can continue to:
- Move your business forward
- Set/meet objectives and strategies
- Track your effectiveness
- Assess your competition
- Identify potential customers
- Monitor your cash flow
The strategies you outline in your plan can be shared with your management team, partners, spouses, employees and new recruits to ensure you are all working toward a common goal.
Business Plans & Estate Planning
Another important reason to set up a business plan is to protect your business assets and address tax issues. You may decide to create a business entity (corporation, partnership or limited liability company) to protect yourself from business debts, personal liabilities, tax ramifications and more. You can include the valuation (worth) of your business for legal protection in the case of death, divorce, inheritance and estate planning.
Maintaining an up-to-date business plan will also be helpful if you decide to sell your business later on. This information in writing will show potential buyers exactly what they are getting and what they might expect in the future.
The bottom line is that if you have a business, you really need a business plan to outline your goals and how you will achieve them. It’s an investment into the future of your business.
The Denver business planning lawyers at The Brown Law Firm LLC can help you devise a business plan for your new or established venture – one that sets realistic goals and expectations.
Contact The Brown Law Firm LLC at (303) 339-3750 or send us a message online to bring your unique situation to the table and start discussing your best options.