Why Write a Business Plan?

July 19, 2011

If you are struggling with writing a business plan or executive summary, you are not alone. Writing a business plan is supposed to be hard. But, don’t give up! There are critical reasons why you would want to write a business plan and I’m going to share just three of those critical reasons with you. A complete business plan can be a great tool to help you gain the necessary funding for your idea, complete the actions needed to start your business, and then keep your focus once everything is up and running.

A Sales Tool: You may need to gain outside financing to start your business. If you do, then a business plan is a great tool to help you convince investors to hop on board. A well- written business plan can also serve to sell even friends and family members on your idea and it’s chance for success. It might also serve to help you convince yourself to get going. Creating a business plan requires you to engage in a rigorous process that will help you ensure that your business will be a viable venture.
A Call to Action: A business plan can help propel you to take action, to engage, to participate. Many people think about starting their own business for years but shy away from the idea because the process seems too large or complicated. A business plan helps you break up the large task of starting a business into smaller, more manageable tasks. By solving this sequence of smaller problems, you will eventually solve the big one.
A Compass: Once you have started your business, your business plan can be an invaluable tool to keep you on track. It can be all too easy to get distracted by the  day to day tasks of running your own business. There will always be many matters that need your attention making it very easy to lose sight of your main objections. Your business plan can help keep you focused and remind you as to what your priorities should be.


Picture of Alyssa Magnotti

Alyssa Magnotti