Business Plans

Why Do I Need a Business Plan?

"Proper planning prevents poor performance."


A business plan is like a road map, that assists the business owner to know where he is trying to go and how to get there. All businesses should have some form of business plan. It may be a simple concept for a small "mom & pop" business, or detailed and extensive for a larger business preparing a loan application. It may need to be updated on a regular basis to keep up with changes in the economy or opportunities that arise, but should have a basic concept of the mission of the business that does not vary. Businesses with a comprehensive business plan have a much higher degree of success.
This is why it is required for any loan application. The lender, dealing with all kinds of businesses, needs to know just what your business is about. If you have a confident knowledge of your business, the lenders comfort level of risking the depositors money with you is increased. Some landlords will also require a business plan before they will lease to you. They want to make sure you understand you are getting into.
Anyone thinking of starting or buying a business, must have some form of a business plan to really know if the concept is realistic. Once the business is going, it can keep you on track. Take it out every few months to see if you are doing what you should be.
You can easily write your own plan by following an outline. I will provide a sample outline in a future post. There are software packages that are pretty good available at the office stores. If you are applying for a large loan for expansion, the cost of a professionally prepared plan, may be justified.

Larry Steinborn, Broker
Business Depot
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