Many designers hold the belief that a business plan is only used for financial planning, but this commonplace ideal is not only incorrect, it’s damaging.
Business plans do a multitude of things from figuring out the financial aspects, like budgetary issues in each stage and how much money will be needed to start, to the mission, the vision, and the product. Even the target customer, prime marketing and sales strategies are outlined in business plans. These are all vital aspects of creating a business, and a business plan brings these all together in one place.
Still skeptical? Here are four reasons why you need a business plan, regardless of your financial status:
- A business plan provides a detailed map of where your business is going and how it will get there. Without this map, you’re driving in the middle of the desert on empty, and you have no idea where the next gas station is. Not only will your car eventually stop going, you’re also probably going to die of dehydration, heat stroke, hunger, etc. Without a business plan, you can fail financially while stumbling with sales and making a massacre out of your mission.
- A business plan holds you, and your employees, accountable while keeping the company on track. The business plan is a document that shows you exactly where you should be, without it everything is guess work.
- The length of the product cycle, from the production to the payment by the purchaser, is exceptionally long in fashion. A business plan will help you keep track of where you are in the cycle, and where your numbers need to be to make it through it.
- A business plan is a living plan and it is meant to be changed and adjusted as you go, according to how things evolve. This will make sure that you keep a close track on how the business is growing and adjust accordingly while setting up new milestones.
Looking to start a fashion business but don’t know where to begin? Start with planning!
MoodU Fashion Business now offers an intro course to the building a fashion brand. Everything you need to know before you start and in order for you to build a strong business plan for your fashion brand.
Check out MoodU for all your fashion business needs!