How Important is it to write out a formal business plan if I have my own funding for a new business?
Will I need it for anything else besides applying for loans? I have an outline, but not a "formal" business plan written out.
A business plan is more than just for financing, it provides structure for 1 and 5 years. If you happen to either save in one area or overspend. The first 5years are crucial you may go almost one year without showing a profit.
Here are some other things you might want to consider:
How are you listed? Sole Proprietor, S Corp, C Corp LLC
How are you doing your bookkeeping, receipts, invoices. are you adequately staffed?
Do you have the right insurance in place?
Legal Counsel? Document review, handle questions at an affordable price?
Marketing advice?
Human Resource questions answered?
Free listing to get your company the exposure needed from others?
If you need a resource or website to help let me know? I just want to make sure you have a good chance to succeed.
December 28th, 2009 at 7:32 pm
Whether you’re self-funded or looking for venture capital, a formal business plan will provide you with a roadmap to where you want to be and how to get there. In it you’ll describe (for yourself, in this case) how you’re going to market the business, forecast cash flows for a few years, operations, staffing (if applicable), inventory levels, expansion plans, etc.
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December 28th, 2009 at 7:40 pm
It is important for YOU. I have seen people in business that didn’t have a clue about whether they were making money (and how much) or not. You need to spell all this out in a business plan. And stay with it.
References :
December 28th, 2009 at 7:45 pm
I think a formal business plan is something more than just a document you need for applying for loans!
Its you initial goal book. It has sections defining what you want out of the business and how you want to proceed about it in the absence of any other road map.
The Business Plan is where you derive your purpose of incorporation/partnership/closely held businesses from, not to mention that it serves as your referal in case of doubts. And if you take the first step in a planned way you will definitely be reaping the benefits of "Well begun is half done".
Just because something seems so unimportant does not mean its not required. Trust me if you do it right you will have only yourself to thank in the coming years!
All the best!
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Personal Experience!
December 28th, 2009 at 8:19 pm
A business plan is more than just for financing, it provides structure for 1 and 5 years. If you happen to either save in one area or overspend. The first 5years are crucial you may go almost one year without showing a profit.
Here are some other things you might want to consider:
How are you listed? Sole Proprietor, S Corp, C Corp LLC
How are you doing your bookkeeping, receipts, invoices. are you adequately staffed?
Do you have the right insurance in place?
Legal Counsel? Document review, handle questions at an affordable price?
Marketing advice?
Human Resource questions answered?
Free listing to get your company the exposure needed from others?
If you need a resource or website to help let me know? I just want to make sure you have a good chance to succeed.
References :
December 28th, 2009 at 8:35 pm
My president, Tim Berry, is a big fan of business planning as a process and not as a plan. He always says that thinking of a business plan as a formal document can be somewhat limiting. Thinking of it as a process throughout the course of your business makes it a living document. Plan vs Actual, forecasting, keeping track of your cash flow, all of these things are important in your business planning process.
A formal plan will assist you in getting all those ideas formalized, but don’t stop there. Use your business plan to move forward and grow your business.
And best of luck with your new business!
References :
I work for Palo Alto Software. http://www.bplans.com