Why Should You Have a Business Plan?

Are you planning to start a new business? Or are you consideringexpanding your current business and require a bank loan orinvestment from outsiders? If you are going to look for an investment of capital it is quitelikely that you will be required to have a business plan. If youare starting a business, despite the work involved, a businessplan can prepare you for the obstacles ahead and help ensure yoursuccess. A business plan is something that many small businesses fail tocreate, however, many business owners are adamant that having awritten business plan is one of the keys to their presentsuccess. Creating a business plan forces you to contemplatepossible obstacles to your business and prepares you to findsolutions that will help you to overcome them. To find investors or get a bank loan, they will want to see thatyou have the experience or resources to run the business. Theywill want to see your projected income as well as your suggestedrepayment plan already laid out. Taking the time to do this isnot only important for them, but it gives you a measuring tool toverify if your business is growing properly. You can gage yoursuccess on how close to the plan your business has actuallyperformed. Perhaps you'll do worse, or perhaps you'll do better,either way it helps you determine how well your business isgetting on. If you have never seen a business plan before you may beconcerned that is is too difficult a proposition for you tomanage on your own. While there are services available where you can hire someone towrite a business plan for you, depending on your needs it may bewise to familiarize yourself with a business plan's layout. Thiswill not only help you to provide the necessary information, butmay encourage you to try your own hand at it. There's a free tool at www.bdc.ca which will assist you increating a business plan. Some of the topics you will be requiredto explain are your Market, Customer, Competition, MarketingPlan, Research & Development along with financial forecasts. Youmay consider hiring someone to help you with your financialsheets after completing the written part of the Business Plan. Your Business Plan will become your guide and silent businesspartner - indicating where you need to improve and helping youstay one step ahead of your competition. Make it a priority tohave this crucial road map for your business .