A solid and well-defined business plan is an important first step to starting or running a business. Why is developing a business plan an important first step?
- Creates a roadmap
- Provides direction in making decisions
- Required by lenders to secure financing, especially for start-ups
- Thinks through the idea
- Resource for raising money
A business plan can be a communications tool for investors, suppliers, employees and others interested in understanding the operations and goals of the business. Most importantly, however, it is the enterprise owners tool for the day-to-day operations of the business.
Writing a Business Plan Can Be Difficult
Although planning is critical to success, it is often overlooked in favor of intuition or "gut feeling". It is sometimes difficult to know how to plan and what to plan for. While it may be a difficult task, heading into it without any direction is much worse.
For a sample business plan or for more information on writing a comprehensive business plan go to Starting a Business Wizard.
