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YOGYAKARTA - Many potential entrepreneurs and novice entrepreneurs think that running a business is very easy. They think that business is only about action and product sales. Whereas in starting a business, there needs to be a business plan or planning first.

Every potential businessman is required to know the importance of the business plan. Business planning is the basis as well as a road map in running a business. Without planning, your business will only run without direction so that it is difficult to develop and targets are difficult to achieve. Therefore, business plan development needs to be done from the start.

Business plan is a planning for the business that you will run. In planning contains various important elements in business, ranging from goals, visions, missions, costs, management, and so on.

Business plan is not only important for big business people, but also needs to be owned by small entrepreneurs such as online shops, SMEs, and others. With the planning, you can run your business further and achieve the target.

Here's the importance of having a business plan for novice entrepreneurs:

When creating a business plan, you will write down the goals and visions and business missions that you will carry out. You will think about measurably and specifically what your business goals are.

By creating a business plan, you will have clearer and more focused business goals. You become aware of how to make decisions and supervise everything that is in your business. You can find out what steps are appropriate or not in line with your business goals. In addition, you can also avoid various risks that harm your business and predict your business's future.

One of the factors that must be prepared in starting a business is capital or funding. Capital can come from personal or external finance, such as seeking loans or injections of funds from investors.

With business planning, you can draw up a clearer and neater financial budget. That way you can allocate your finances more optimally and avoid losses. It's different when you run a business without planning. This condition will make you tend to spend funds without a clear purpose, so that it can cause your finances to mess up.

Starting a business can actually be done without personal capital. You can seek funding from investors as your business capital. But to get it, you need to convince investors to be willing to invest in you.

A clear business plan is an important asset to attract and convince investors. Because investors don't want to spend their money for free to build businesses that are unclear or planned. Investors will check your business plans before deciding to invest.

Many entrepreneurs experience failure or their businesses are out of business. One of the reasons is because they do not have a clear business plan. Therefore, it is important for every entrepreneur to have a business plan to avoid various risk of loss.

A number of risk losses that can be avoided or minimized by the existence of a business plan, including lack of capital, losing to competitors, inadequate teams, no market needs, to missetting prices. Imagine the many risks that will happen to you if you don't have a business plan.

Business plans have proven to be able to create opportunities for your business. With the business plan, you can develop ideas and test the feasibility of your business ideas. In addition, you are also easier in managing finances, managing operations, HR management, and others.

With a business plan, you also know the direction and strategy that is implemented to carry out business. You can predict the sustainability of your business, and create various plans if the initial plan fails.

This is an explanation of the importance of business plans for novice entrepreneurs. Being an entrepreneur or a businessman is indeed a promising profession. But remember, business travel is not as easy as providing products and selling them. You need to understand a number of important tips about starting a business, one of which is making business planning.

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