Is it necessary to have a start up business plan?

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Answered by: Nicole, An Expert in the Business Start Up Category
When you are looking into starting a business you will see a lot of information about start up business plans. Most research will lead you to this important step. For many start up businesses a business plan is absolutely necessary. It does several things for you. However, if you are starting an in-home business, it may not seem as important.

The bottom line is that if you plan to get financial backing, investors or other support for your new business you will have to create a business plan. This important document outlines what your business will do, the services and products you will provide, and how you will provide them. Much more importantly for this purpose, your business plan will include information about how much money it will cost to start your business, where that money will come from, and how you will pay those debts and turn a profit.

In order to create your business plan you will need to do some research into the start up costs of your business. You must include costs of operation and initial inventory for the first six months to one year. You will also need to outline how much money you have to invest in the business, and how much you are looking for from outside sources. The business plan should detail exactly how you will bring business into your operation to turn a profit, including marketing plans.

Even if you do not need or want to get financial backing for your venture, a business plan can serve many other purposes. It is a way for you to organize your thoughts about what your business will be and how it will grow. It gives you the opportunity to set goals, policies, price lists, and organizational manuals for yourself and employees. The business plan is your map to success. It's what keeps you on track and headed toward the goals you set when you first had the idea for your business.

It is unreasonable to think that your business plan will remain the same over the years. You may revise your plan several times before you ever start your business. As you first begin to sell products and services you may want to review your business plan on a weekly or monthly basis. You may discover some areas where you can tweak your plan and make it more realistic. The goal of the business plan in this sense is to keep you on track toward the success you envisioned when you first made the decision to own a business.

The simple answer to the question of the necessity of a business plan is that you should have one, if only for your own use. If you want or need financial backing, however, it is completely necessary. If the business plan is for your own purposes, you can create it yourself. If you need financial backing, you will want to hire a professional to help you put together a start up business plan that will woo the investors and loans you need to get started.

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