I DON’T CARE WHAT YOUR SITUATION IS; the short answer to that question is “yes” every time! The most common reasoning given for needing a business plan is for the banks when you are applying for financing. While this is defiantly going to be a requirement, a business plan is most important regardless of you financing plans!
At some point you need to take your business ideas off of the coffee house napkin and test their buoyancy. Most start up businesses fail for two reasons:
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1) They are under capitalized
2) They have some sort of serious design flaw
The number one reason most companies are underfunded or capitalized is because they did not take the business plan process serious enough. Walking through a plan for your benefit and not just that of a bank will allow you to dig deep enough into the structure to see how much money is necessary to carry out all the iatrical processes until profits are realized. When starting a business you want to make the most educated estimate of costs and expenses possible and that is impossible to do without planning and charting the business through its infancy.
The second leading cause of failure is a design flaw that may be within any arm of your business structure. When you are a mature company you can withstand flaws and make necessary changes as you go, but as a startup company and bump in the road can lead to failure or shortcomings. The only way to prevent these catastrophes is to thoroughly design each part of your business inside a business plan designed specifically for you company.
Business plans are not boiler plate….you must make them your own. You cannot download a fill in the blank template and expect it to satisfy your needs. You may fool a bank into giving you some start up funds but you cannot fool the bottom line. The moral of the story is to take the time to professionally design your business plan. If you cannot get the business plan to show how profits will be realized the start over with a new idea, and consider yourself luck that you saved all the time and heartache of a failed business. Time spent researching now will save you a great deal in the future!
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