One of the most common questions I’m asked by people who are thinking of starting a small business – or in the early stage of their business – is whether they really need a business plan.
While it’s not essential, I definitely recommend you plan for your business if you want to improve your chances of success.
Just look at the facts … many small businesses fail within their first year. Many more fail within the first five years. If you’re thinking of starting a business that you want to be successful in the long-term, it would be wise to create a business plan.
I know this sounds scary for a lot of people, but it really doesn’t need to be.
Formal Planning:
If you’re applying for finance for your business you will most likely need a comprehensive, detailed business plan. You will need to show that you’ve done your research and that your business is viable. You also need to show clear evidence that there’s a good chance this business will be successful and that you will be able to meet your financial obligations.
There may be other situations where a thorough business plan will be required too.
Preparing a formal business plan can be a lot of work and that’s why I created the Business Planning Manual. This helps guide small and micro business owners through the process, making it all as simple as possible.
Informal Business Plan:
However, even if you don’t need a business plan for any formal purposes it’s still good to have. It makes you really think about your business and get clear on your visions and goals. It can also help you to plan for situations that may occur in the future so you can be prepared for them.
If your plan is solely for your own purpose, you don’t necessarily even need to write it in a professional format. It might be simply a note book or a folder where you make notes. Whatever format is easiest for you to follow, refer back to and update as necessary is perfectly okay.
Your plan is going to be a continual work-in-progress … changing regularly as your business grows. The effort you put into your plan now will all be worthwhile when you start achieving your business goals.
