6 | HOW TO WRITE A BUSINESS PLAN
“Marry in haste, repent at leisure.”
(proverb)
“A stitch in time saves nine.”
(proverb)
What Is a Business Plan?
A business plan is a written statement that
describes and analyzes your business and
gives detailed projections about its future.
A business plan also covers the financial
aspects of starting or expanding your
business—how much money you need and
how you’ll pay it back.
Writing a business plan is a lot of work.
So why take the time to write one? The
best answer is the wisdom gained by
literally millions of business owners just
like you. Almost without exception, each
business owner with a plan is pleased she
has one, and each owner without a plan
wishes he had written one.
Why Write a Business Plan?
Why Write a Business Plan?
Here are some of the specific and
immediate benefits you will derive from
writing your business plan.
Helps You Get Money
Most lenders or investors require a written
business plan before they will consider
your proposal seriously. Even some
landlords require a sound business plan
before they will lease you space. Before
making a commitment to you, they want to
see that you have thought through critical
issues facing you as a business owner and
that you really understand your business.
They also want to make sure your business
has a good chance of succeeding.
In my experience, about 35% to 40%
of the people currently in business do
not know how money flows through their
business. Writing a business plan with this
book teaches you where money comes
from and where it goes. Is it any wonder
that your backers want to see your plan
before they consider your financial request?
There are as many potential lenders and
investors as there are prospective business
owners. If you have a thoroughly thought-
out business and financial plan that
demonstrates a good likelihood of success
and you are persistent, you will find
the money you need. Of course, it may
take longer than you expect and require
more work than you expect, but you will
ultimately be successful if you believe in
your business.Helps You Decide to Proceed or Stop
One major theme of the book may surprise
you. It’s as simple as it is important. You,
as the prospective business owner, are the
most important person you must convince
of the soundness of your proposal. There-
fore, much of the work you are asked to do