Why Do You Need A Business Plan?

Whether you are a hobbyist who wants to turn their hobby into a second income, or a serious small business entrepreneur that wants to start a corner store, you need to consider what a business plan can do for your business.

When you write a business plan you are not simply writing a document that a bank or potential investors would look at, you are writing a plan for how you will conduct your business.

Business plans are fluid things that transform with your business. You will start out with a plan for what you will do to get your business up off the ground and moving. What is your marketing strategy? How much money will you spend on advertising, building and maintaining a website, or other business necessities for your business? Will you need to spend a certain amount on inventory?

By spending a little time working out a plan for your business before you begin you will have a much better way to keep on course as you move forward. Then get into the habit of reading over your business plan and adjusting it once a year to match what your new plan for your business is and what you want to accomplish over the next six months, three years and five years.

And don't forget to save copies of older versions, so you can see where your business came from and how it got to where it is in later years. Particularly if you might one day want to track your business growth for potential investors.