Why Should You Have A Business Plan?

Are you planning to start a new business? Or are you considering nexpanding your current business and require a bank loan or ninvestment from outsiders? nnIf you are going to look for an investment of capital it is quite nlikely that you will be required to have a business plan. If you nare starting a business, despite the work involved, a business nplan can prepare you for the obstacles ahead and help ensure your nsuccess. nnA business plan is something that many small businesses fail to ncreate; however, many business owners are adamant that having a nwritten business plan is one of the keys to their present nsuccess. Creating a business plan forces you to contemplate npossible obstacles to your business and prepares you to find nsolutions that will help you to overcome them. nnTo find investors or get a bank loan, they will want to see that nyou have the experience or resources to run the business. They nwill want to see your projected income as well as your suggested nrepayment plan already laid out. Taking the time to do this is nnot only important for them, but it gives you a measuring tool to nverify if your business is growing properly. You can gage your nsuccess on how close to the plan your business has actually nperformed. Perhaps you'll do worse, or perhaps you'll do better, neither way it helps you determine how well your business is ngetting on. nnIf you have never seen a business plan before you may be nconcerned that is too difficult a proposition for you to nmanage on your own. nnWhile there are services available where you can hire someone to nwrite a business plan for you, depending on your needs it may be nwise to familiarize yourself with a business plan's layout. This nwill not only help you to provide the necessary information, but nmay encourage you to try your own hand at it. nnnThere's a free tool at www.bdc.ca which will assist you in ncreating a business plan. Some of the topics you will be required nto explain are your Market, Customer, Competition, Marketing nPlan, and Research & Development along with financial forecasts. You nmay consider hiring someone to help you with your financial nsheets after completing the written part of the Business Plan. nnYour Business Plan will become your guide and silent business npartner - indicating where you need to improve and helping you nstay one step ahead of your competition. Make it a priority to nhave this crucial road map for your business.n