Do I really need a business plan?

Deb~
Everyone's telling me I should write a business plan for my business but I wonder if it's really necessary. What do you think?

I get this question a lot. The answer is "it depends" - how's that for vague?! It depends on how you define a "business plan". It also depends on why you are writing the plan and for whom. A "traditional" plan is a written document describing your business start-up or expansion… including production, marketing, management and financial plans. This is the kind of plan you would need to prepare if you are seeking financing for your business start-up or expansion. A lender or investor will require this.

A simpler business plan could be a few pages that captures your idea, potential customers, pricing and profit strategy, projected expenses and marketing plan. This would be written for you or to share with potential business partners/collaborators.

There are some very good reasons to put a plan together - in whatever form or length that makes sense for you...

Reason one: to convince “yourself” that your start up or expansion plans will succeed and inform your decision as to whether or not your idea is worth pursuing further.

Reason two: to convince others…..including potential lenders, investors, partners, advisors and employees.

Reason three: the process of putting a plan together requires giving your business idea some serious thought and research. It will allow you to really see what it is you do "know" and what areas need further refining, thought and research. It often takes the process of writing things down to see where "the holes" are.

Reason four: your business plan is your best management too. By continually reviewing and adjusting your plan… you’ll stay on track to reach your goals… and it will help you focus on the big picture while tending to the day to day details of operating your business.

DO keep in mind that your business plan is NEVER done - whether its only a few pages or "novel" - it should be a workng document that you re-visit and update often. This is especially true if you are in business with others.

Having worked with thousands of businesses - I can tell you that businesses that have a plan stand a greater chance for success than businesses that don’t! Plus having your plans written down - allows you feel in control of running your business rather than feeling as though your business is running you!

Sure - putting a plan together can be a real pain and finding the time to do it can be challenging -just do what's right for you and make it your own! It's worth the effort!
~Deb