Starting or running a business can be an exciting journey. To make sure your business is successful, it's important to have a good plan. This blog will explain why entrepreneurs and business owners should have financial projections and either a business canvas or a business plan. To help you create these important resources, Arapahoe Libraries has the Gale Business Plan Builder which is available for free on our website.

Financial Projections

Financial projections are estimates of your business’s future financial performance. These projections typically cover expected revenue, expenses and profitability over a specific time period, such as six months or a year. Here’s why it's important to have financial projections:

• Financial Planning: Financial projections help you plan your finances by providing a clear picture of expected income and expenditures. This aids in better budget management.
• Monitoring Performance: Projections allow you to compare actual performance with your estimates. This helps identify discrepancies and make necessary adjustments to stay on track.
• Securing Funding: Banks and investors often require financial projections before providing funding or a business loan. They demonstrate that you have a realistic plan for achieving financial success.

Business Canvas

A business canvas, which is called a Lean Canvas in Gale Business Plan Builder, is a visual chart that outlines the key elements of your business. It’s simpler and more flexible than a full business plan. Here’s why a business canvas can be useful:

• Quick Overview: The canvas provides a snapshot of your business model on a single page. This makes it easier to understand and share with others.
• Collaboration: A business canvas encourages teamwork. You can involve your team in the planning process and get different perspectives.
• Focus on Key Elements: The canvas highlights important parts of your business, such as customers, value propositions, revenue streams and more. This helps you focus on what matters most.

Business Plan

A business plan is like a roadmap for your business. It explains what your business is about, what you want to achieve and how you plan to get there. Here’s why having a business plan is important:

• Clarity and Focus: A business plan helps you clearly define your business goals and the steps you need to take to reach them. This keeps you focused and on track.
• Attracting Investors: Investors and banks often want to see a business plan before they give money. A well-thought-out plan shows them you are serious and have a clear vision.
• Managing Risks: By planning ahead, you can identify potential problems and figure out ways to deal with them before they happen.
• Setting Benchmarks: A business plan helps you set goals and milestones. This way, you can measure your progress.

Gale Business Plan Builder

Using Gale Business Plan Builder has many benefits for people who want to create a business plan, a business canvas or financial projections.

• Definitions and Prompts: In each section, Gale Business Plan Builder has offered answers to common questions and prompts to help with getting started.  
  • For example, if you're creating a Unique Value Proposition, Gale Business Plan Builder offers links to resources about the importance of branding, enhancing customer experience, targeting your market and much more.
• Ready-Made Templates: Each offering has its own template that allows a business owner to start learning and entering content, rather than having to think about what sections go into a business plan or a break-even analysis. Each of these items can be e-mailed or downloaded as a PDF or Microsoft Word document.
• Secure and Built for Collaboration: Each business owner creates their own log-in to access their Gale Business Plan Builder documents. They can also choose to invite others to view and edit their resources.

Find Support and Resources

If you have any questions about these steps, please feel free to visit any one of the Arapahoe Libraries or submit an Ask a Librarian request for a one-on-one appointment with the business librarian.