What is a business plan and why do I need one?

Asked on 1/23/2009 by Cissie King-Jones - Tata Group
Answered by ABC Staff

A business plan is any plan that works for a business to look ahead, allocate resources, focus on key points, and prepare for problems and opportunities.

Unfortunately, many people think of business plans only for starting a new business or applying for business loans. But they are also vital for running a business, whether or not the business needs new loans or new investments. Businesses need plans to optimize growth and development according to priorities.

Additionally, it can tell your sales personnel, suppliers and others about your operations and goals.

5 Tips for Making the Most of Your Business Plan

1. Take the long view and do long-term planning. Map out where you want to be five years from now and how you plan to get there.
   
2. Write the plan yourself. You will learn more about your business by doing so.
   
3. Think of your plan as a living document. Review it regularly to make sure you are on track or to adjust it to market changes.
   
4. Share the plan with others who can help you get where you want to go—such as lenders, key employees and advisors.
   
5. Understand that you might pay a price in the short run to obtain long-term business growth and health.

Guidelines

• You must be signed in as an ABC member to ask a question.
• Don't close the window yet! It's free to become a member!
• Be polite, use common sense and don't use profanity or offensive language.
• We cannot guarantee that your question will be answered. Whether questions are answered is soley at the discretion of ABC.
• ABC reserve the right to remove, modify or morve questions and comments at our discretion and without explaination.