Purpose of a Business Plan

Your Small Business Plan says a lot about…YOU.

Creating a well-written small business plan forces you, the founder, to think through all of the core issues that will impact the startup, operation and ultimately the success of your business. When complete, the written document should provide evidence that you understand the customers and the market, you know the competition, you have the right experience, and you have an operating plan. The financial statements associated with the plan take into consideration all of the assumptions, costs and forecasted revenue to show the business’s expected financial outcome.

While writing a business plan can be time-consuming, the value cannot be overstated. Problems that might otherwise have proven fatal to the business can be identified and completely avoided at almost no cost. The business plan provides a roadmap to follow when starting the business. Even when there are unexpected twists and turns in the road, successful entrepreneurs will tell you that having the plan enabled them to make the right adjustments more quickly, with greater confidence and a better outcome.

Lenders and potential investors will be reading your business plan to learn two things: first and most obvious, what your business is about. Second, and more importantly, the business plan will tell them about you—not in the sense of your biography, but rather, about your ability to think logically, convey information in an orderly manner, and thoroughly think through how you will build and sustain a profitable business.

This website is designed to show you how to create a business plan, section by section. Use the Quick Links on the left to go immediately to any section.