Do I Need to Write a Business Plan?
How Important Is It to Get Your Business Idea on Paper?
Question: Do I need to write a business plan?
Yes! I know why you're asking. You're excited. You want to get your new business up and running. The last thing you want to do right now is to spend time researching and investigating.
People think of writing a business plan as something that’s only necessary if you’re trying to get a business loan or persuade investors that your business is worth investing their money in, but actually, writing a business plan is necessary no matter how you intend to finance your new business.
The main purpose of writing a business plan when you’re starting a business is to test the viability of your business idea. Writing a business plan will tell you if the business you’re thinking of starting has a chance of becoming a successful business.
Preparing a business plan before you start your business forces you to do the research and get the information that you’ll need to turn your idea into a successful venture. And if putting together your business plan shows you that that particular business idea won’t work? Abandon it and try another idea.
If you don’t write a business plan when you’re thinking of starting a business, in the best case scenario, you’ll be floundering around squandering time and resources. In the worst case scenario, your new business will fail – because of things you didn’t but should have known.
The bottom line is that if you invest some time and energy into writing a business plan, you’ve got a much better chance of avoiding business failure.
For how to write a business plan, see my Writing a Business Plan series, which starts with The Business Plan Outline.