Just as a ship, every business needs a blueprint that guides its operations. No matter the size, if you do not understand the model of the business you are venturing into, challenges may arise that may pose very difficult to mange. Drafting a business plan may not cost you anything compared to the growth of your business overtime. It is expected that you understand why you need a business plan by the time you are done reading this article.

It is Your Business Model
One thing that human being and even organizations use as instrument of growth measurement is when they look up to a model. By so doing, they do not only skip unnecessary mistakes, they are able to track their level of growth, development and achievement.Therefore, for your business to grow, you must provide a model on which to base the growth.

It's Cost Effective
Business plan is equally very cost effective. It saves a great deal of cost for the organisation. Cost does not necessarily mean money, it also reaches out to your time, labor, ideas, focus and even to the number of employees you need per time. Understanding the level you are in business puts you through and drives you to the important and immediate needs of your business per time.

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Understand your Business Organogram
Drafting a business plan for your business helps you understand your business organisational structure. What this means is that, it helps you understand who your stakeholders are, who you should employ as manager, they various departments involved etc. It goes as far as helping you understand who your target audience are.

Helps Your Financial Budget
A business plan basically helps a business man to know how much capital he needs to get the business up and running. If you didn't have the capital, then there wasn't a business plan; and if there was, then you need to plan you expenditure very well. And one way to get it done is to draft a business plan.

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