Why Every Small Business Needs A Business Plan

by Jim Smith on May 20, 2011 · 2 comments

People never plan to fail, they fail to plan. You and your team need to develop a business plan starting with a mission statement, product definition, a marketing strategy and financial projections. You need to design and write a forceful investor summary to make your plan more attractive when you need to raise capital to finance your business venture or expansion.

man-in-string illustration
Creative Commons License photo credit: HikingArtist.com

Your completed business plan should identify the expectations you have for your new or existing business and should tell “the tale” of your business to a potential lender. The plan is a stand-alone document because, when completed, all business issues should be addressed without requiring additional explanation. The plan is a living document and should be reviewed and changed as regularly as your plans and strategies change. For a list of the 10 elements that you build your plan around, read: 10 ESSENTIAL ELEMENTS OF A SMALL BUSINESS PLAN

{ 2 comments… read them below or add one }

Roger Root May 20, 2011 at 10:28 am

I started a business and tried to run it without a plan and failed miserably. I could have foreseen some of the obstacles if I had invested the time planning. I wish I had had your advice back then.


Jim Smith Jim Smith May 21, 2011 at 10:57 am

Roger:If you learned from that experience then you are way ahead of the game. Good luck next time.


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