A business also needs money to start, to operate, and to grow.
By expending the effort to develop a comprehensive business plan, you will have a powerful tool for attracting investors.
WHAT YOU SHOULD KNOW BEFORE GETTING STARTED [top]Why Write a Business Plan?
Business plans are prepared as a necessary instrument for raising capital from potential investors, bankers and other lenders.
Unfortunately, many prospective business owners are convinced that their idea for a product or service is a "can't miss" proposition, and don't take the time to do the necessary research and work through a proper business plan.
The more you know about your industry, your prospective customers, and the competition the greater the likely hood that your business will succeed.Having an up-to-date business plan gives you a much better chance of getting the money you need to keep operating or to expand.Investors and financiers are always looking at the risk of non-repayment, and word-of-mouth is no substitute for written facts and figures in a properly-prepared business plan.Starting a business without a business plan is just as risky. We often make the mistake of thinking of a business plan as a single document that you just put together when you're first starting out and then set aside.Something to check off the to-do list and be done with. Simple - the business plan is the blueprint for your business.You wouldn't walk over to an empty lot and just start nailing boards together if you wanted to build a house.The company's original business plan needs to be revised as new goals are set.Reviewing the business plan can also help you see what goals have been accomplished, what changes need to be made, or what new directions your company's growth should take.Writing a business plan is time-consuming, but it's essential if you want to have a successful business that's going to survive the startup phase.If your business doesn't have one, maybe it's time to start working on one.