Do You Really Need a Traditional Business Plan?

Wed, Sep 5, 2012


It’s simply never been easier to go to work for yourself. Technological advances are making it easier and easier for people to work remotely and even build their own companies out of a garage or living room. In most cases, all you need is an internet connection, a computer, and four walls to start a business. Whether you’re a freelance writer or an eBay reseller, there have never been more ways to make a living with your own great idea, and a lot of times from the comfort of your very own home.

But what’s required in setting up a business the right way? We’ll take a look at some of your first steps, and talk about whether or not your business needs one of the more important parts of any new company’s arsenal: the business plan.

Your company’s business plan basically serves as its roadmap, or its Bible, if you will. Many television shows task one of their writers with keeping the “show Bible,” which collects all the story and character details that have accumulated over time, for reference. This is sort of how your business plan will function, except that you will be building it before your company gets off the ground.

Included in your company’s business plan will be things like its mission statement, monetary information, and other important administrative details. Some of it can be rather dry, and some of it can be quite informative. Also included will be a very detailed breakdown of every service your business will provide, and exactly how it will do so. This must all be represented in very thorough detail. Your plan lays out exactly how your business will work, in a way gives any other individual a complete and comprehensive picture of your fully-functioning company.

Do you absolutely need one? This actually depends on the nature of your company. If you’re starting a small organization with a few friends that you don’t intend to get too serious about, then you might not need a business plan. If your company is a non-profit, however, or will be relying on investors or loans, then the business plan is an absolute must.

Essentially, your business plan exists to make potential investors or lenders feel secure in their decision to let you borrow what will probably be a considerable amount of money to get your project off the ground. If you can prove to a bank or funding agency that your business has a plan and will work the way you want it to, then you’re much more likely to secure the funding you’ll need to get your company started.

It’s not hard to find out where the best funding, grants, and loans can be found. Simply following business news channels and actively searching the Internet will help you locate the best places to find your company the funding it needs to get started. If your business plan looks great, then you’ve got absolutely nothing to worry about.

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