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Why Create a Business Plan?

LongIsland.com

Even if you are starting a business on a part-time basis, it is smart to write a business plan. The experts in business have documented that the amount of time you spend in planning and ...

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Even if you are starting a business on a part-time basis, it is smart to write a business plan. The experts in business have documented that the amount of time you spend in planning and researching your new business will be directly related to its success. It is not uncommon to spend a year or more planning and researching the start of a new business.

According to the type of business that you plan to start, your business plan may be a few simple pages or a much more complex project with a lot of supporting documentation. If you do not create a business plan, you risk your business starting to have problems and end up going off in too many directions for you to control. Consider these reasons for creating a business plan: (1) forces you to step back and take an objective look at the reality of your proposed business idea(s); (2) provides a blueprint that can direct you and lend "structure" to your new endeavor; (3) will assist you in the financial area since you will literally be able to "take it to the bank" when you apply for funding; (4) helps you to focus your energies and thoughts towards the goals that you want to achieve; (5) helps you identify problems and potential issues before you even start; (6) can be used as a persuasive presentation to friends, lenders, advertisers, etc.