The Business Plan for New Entrepreneurs

Small business entrepreneurs are often reluctant to commit a business plan to writing.

One reason for this is people perceive time as such a precious commodity. Another reason is that market conditions can be so disruptive that written plans can become outdated when finally implemented.

But, a business plan is a key element, allowing the small entrepreneur to anticipate future decisions and actions necessary to run their business successfully.

The new entrepreneur, who has identified his or her internal or external problems, first should give consideration to putting a business plan together.

There are several reasons for this:

First, the business plan articulates rational means to achieve goals. The business plan gives the firm constant direction.

Second, the business plan permits effective resource utilization, in that, it provides critical focus and discipline to the small entrepreneur; especially, when he or she is trying to be all things to all people.

Third, the business plan permits the small entrepreneur to be prepared for unforeseen environmental situations. The small entrepreneur is encouraged to look at and understand the full scope of running the firm with its interrelated functions in advance of anticipated problems.

Fourth, the business plan helps the small entrepreneur to evolve into a progressive commercial enterprise. The business plan provides enormous insight into the experience and sophistication of the small entrepreneur and the potential for development.

And finally, the business plan can be used to attract capital from various financial sources. The business plan allows banks, government agencies, private investors or venture capitalists to commit financial resources to future investment opportunities.

There are many variations of formats and outlines for business plans. Click here to view one.

Learn More About Business Plan Development in the Getting Started Area.