"Why do I need a business plan? My business is running fine without one."

Many small and medium-sized business owners share this thought. A business plan is necessary for three primary reasons:

• It gives business owners a current assessment of the business as well as a roadmap for the future.
  
  
• It helps a business grow, both organically and through outside funding.
  
  
• It is essential to have in order to secure financing, ranging from a Small Business Administration loan to venture capital funding.

Many business owners find the thought of writing a business plan overwhelming. Although there are consultants who will write a plan for a small fee, it is can be advantageous for a business owner to experience the process first-hand. It often gives business owners a clear vision of what their goals are and how those goals will be achieved. A basic business plan has several key elements:

• Executive Summary–a brief overview of the entire business (product/services, management team, marketing approach, and summary financial estimates).
  
  
• Description of the business–what exactly is sold and why.
  
  
• Describe the target market–how big is it, what are the markets’ demographics, what are potential customers buying now?
  
  
• Outline your competition–Understanding whom your competition is and how they market themselves is key.
  
  
• Describe your management team–outline your credentials as well as those who will be working with you (if applicable). Ensuring that you have a strong management team is critical.

Describe your marketing strategy–how will you let people know about your product? It is important to be very specific in this section, as it will help you in selling your product.
Taking the time to assemble a plan is important for the long-term health of a business. It not only serves as a roadmap, it gives business owners insight into their company from many different perspectives. Ultimately, it often leads to a better understanding of what it takes to grow and prosper.

Helpful Links:

Small Business Administration:
http://www.sba.gov/

Center for Business Planning:
http://www.businessplans.org/