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Do you need a Business Plan?

Michael Constantinos

June 11, 2007

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Have you ever heard of a business plan before? Each year, millions of Americans create business plans. Many of those individuals are looking to startup their very own business. If you are looking to do the same, you may be wondering whether or not you need to create a business plan.

When it comes to starting a business and business plans, you will find that they are not always required. There are some instances where business plans are completely optional. However, that does not mean that you still shouldn’t want to develop one. Although, in some instances, business plans are optional, there are other times when they are not. So, how do you know whether or not you need to develop yourself a business plan? Keep on reading to find out!.

One of the many business marketing plan uses includes financing. A large number of individuals wish to startup their own business, but many are unable to do so because of money. That is why a most business owners rely on financial lenders or investors. Financial lenders and inventors are sources of financing for many potential business owners. As you might expect, both financial lenders and investors are picky about where their money goes. That is why if you need financing to get your business up and running, you will need to have a business plan. In fact, many financial lenders and inventors will not even give you a quick glance if you do not have a business plan prepared.

Although it is important to understand that financial lenders and investors rely on business plans, you may be wondering why that is so. There are many individuals who wonder why they just can’t explain their business, without having to have it all mapped or planned out. In all honestly, to be successful, a business need to be organized and ran by an individuals who is. Having your business mapped out, in a business plan, is one of the best ways to not only show your organizational skills, but also show that you are serious about your business. Business plans are also used by investors and financial lenders to determine whether or not your business venture is really a profitable one. If not, it is likely that you may find it difficult to obtain the financing that you need.

Now, you do need a business plan if you are looking to obtain financing to get your business started, but if you don’t need financing it may be a different story. If your business does to have any startup costs or if you already have those costs covered, a business plan isn’t necessarily required. However, as previously mentioned, that doesn’t mean that you should automatically forget about developing one. Although you may not need to have a business plan, you still might benefit from making one. One of those benefits is knowing exactly what your business will be and what you will need to do to get it up and running.

In a way, a business plan serves as a to-do list for business developers. Although business plans do come in a number of different formats, most include information on what a business will be about, how that business will be put in motion, how it will generate income, and so on. In fact, one of the points often covered in a business plan is advertising, otherwise known as marketing. By developing your marketing plan ahead of time, you will know exactly how your business will be able to generate income. Developing a business plan, ahead of time, will help to ensure that you get everything right, the first time around.

As you can see, there are some instances where you will need to have a business plan; not having one isn’t an option. Although you may not need to have a business plan, especially if you do not need to worry about financing, you may still want to take the time to develop your own business plan. As previously mentioned, there are a number of benefits to doing so.

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