Should You Have A Business Plan?

The answer is "yes" and "no". Generally in the beginning, you don't really need one. However, once your business has become profitable - it's not a bad idea to get a business plan. Here are 5 good reasons why:

1) To test the feasibility of your business idea.
A business plan allows you to do an initial test to see if your business is feasible and market ready. The business plan gives a detailed outline of what is expected from your business. It especially shows if there is any potential profit to be made over the long term. There are numerous websites that can help you put together an effective business plan, as well as companies that assist with the nuts and bolts of a plan. Having a professional assist you with putting a plan together can clarify whether or not it is a business that has potential.

2) To give your new business the best possible chance of success.
It is integral that financial objectives are clarified in your business plan. A business is only as successful as its customer service and its profit. Focus on budgeting and the market plan. These details will allow for a smoother startup, and ultimately help the business to sustain over time. By forecasting all eventualities in your plan, you can avoid surprises and be prepared for whatever might come.

3) To secure funding, such as bank loans.
Most banks want to get a sense that you know exactly what you are getting into and how your going to pay for it, before you go to them for a loan. A business plan will help them to see that you have thoroughly thought through your financial needs, your personal investment and pay back methods. Banks want to know that you are not in the dark about all the financial responsibilities of running a business. A well developed plan will show them that you are not a risk, but an asset.

4) To make business planning manageable and effective.
A clear plan helps to ensure your business is organized, efficient and effective. It is important to know in advance what is necessary to keep the business running smoothly. Having a plan also allows you to compare your initial vision for the business to the actuality of the business. This comparison will provide you with the information needed to not only adjust your business plan, but adjust your business to work better for you and your customers.

5) To attract investors.
Investors are always looking for new ventures to maximize their money or to help build a worthy cause. Having a stable and productive business could make you very attractive to potential investors who want to help you expand.

Investors want to see that your business is not just running well in the present, but can run well in the future. It is the future that will give them a turn on their investment. A solid business plan and determined execution of it is something that will peak the interest of potential investors.


Writing a business plan takes time and effort. But in the end, it may actually enhance the success of your business!