Writing a Business Plan

It's something that can strike dread in the heart of any small business owner but can deliver great rewards in the end: The BUSINESS PLAN! Let'ss take a look at why this document is so important for all business owners.

• A business plan is a must for investors. 

If you need a loan, are approaching private investors or even working with a business partner they will want to see the true potential of your business planned out clearly with facts and numbers. A business plan is the most acceptable way to provide this information and shows the investment you already have in your business.

• A business plan can help you make decisions and fully commit to the plans you’ve put in place.

By forming a business plan you are writing down specific goals, a vision statement and laying out your mission throughout the sections. In order to complete the plan, decisions must be made and carried throughout!

• A business plan is a reality check. 

This is a way to make sure your dreams and desires have validity in the marketplace and are viable. While this may be a terrifying thought for the small business owner it is a necessary process. It allows the owner to examine their plan, take a step back, do more research and rewrite before any financial investment has occurred. If done honestly, this may be the most crucial part of the plan by vetting out ideas that do not lend strength to the business.

• A business plan can foster new ideas. 

A business plan isn’t just a document that is meant to be dry and formal - it's a way for the business owner can express new and innovative ideas to investors and partners. It should be a living document that can change with new ideas, grow with the business and have a variety of moving parts as the business, marketplace or production changes.

A business plan creates an action plan. 

A business plan is an extremely important document for any small business owner when laying out ideas, but it also could be the most important tool when you use it as an action plan for your business. This document should give owners direction and vision and help deliver those messages to other partners.

Can you be successful in business ownership without a plan? Sure, but do you want to leave it to chance like that? While some dread writing a plan, it doesn’t have to be daunting. Get started by writing down a skeleton outline and fill in the pieces as you go - or decide on specific aspects of the business. This helps keep you focused as you write and keeps the document fresh going forward.