Why do you need a business plan?
A business plan is a valuable tool for every business owner, whether you are starting up, have been in business for years, or are ready to grow.
Think of your business plan as a sales document. It must convince readers that your venture has the potential to be successful. Your enthusiasm, dedication and confidence in the project should be evident to the reader. Avoid highly technical terms and diagrams that the reader may not be familiar with. You will want to write the plan as if the reader is not familiar with the type of business you are starting.
The most effective business plans are dynamic documents that evolve as your business grows and changes. Your plan should reflect the current reality of your business, the environment in which it operates, and your present and future goals.
If you're starting a business, a business plan can help you:
- Turn your ideas and capital into a viable business
- Secure financing from lenders and investors
- Identify strengths, weaknesses, opportunities, and threats
If you're managing an existing business, a business plan can help you:
- Communicate your vision to your employees and external parties
- Develop accurate financial forecasts
- Compare planned versus actual performance
If you're growing your business, a business plan can help you:
- Raise capital to expand
- Create a strategy to manage growth
- Take advantage of opportunities and mitigate risks
If you're exiting your business, a business plan can help you:
- Develop a plan to transfer ownership, sell your business, or close your business
- Establish a timeline for the transition process
- Identify financial and regulatory requirements