Why a Business Plan? Avoid the Path to Failure

Why would you need a business plan for anFor a start-up business, it will tell you whether your
established business? Did you ever have one? Maybeplans make economic sense and if a possibility for
things are just fine, business is great, and yoursuccess exits. It also becomes your roadmap to
business is making tons of money. And very possibly,develop your business and will be the tool that helps
your business is doing the best it can already.convince lenders or equity partners to invest or
However..what if it isn't? How will you know?reinvest in your venture. Lenders of any type will not
Let us consider for a moment that your businesslend unless they know that you have thoroughly
could be better. Without a thoughtful, honest andresearched your business idea or expansion. And
focused look at your business and the industry youeven then, you had better be prepared to answer a
are in, you may be missing opportunities. Or you maylot of questions. Of course, you knew that.
not be aware of certain market indicators that wouldIf you are buying a business, ask to see their
cause you to revisit your current way of doingbusiness plan. You need to see what they had in
things. To be ahead of the game; "forewarned ismind for the business and if they were on track. You
forearmed" so to speak.may be asked to sign a non-disclosure. If after
A business plan will bring all of the components of areviewing their plan, you choose to continue with the
successful business into focus. You will have anpurchase process, write your own business plan, or
excellent handle on market conditions, yourhire someone to do it for you. Make the purchase
competition, new methods, services or productscontingent, if you need to, but do not buy a business
within your industry, pricing information, potential newwithout a business plan of your own. It could end up
clients or customers, marketing and sales techniques,saving you quite a bit of money or making you a lot
opportunities for new business relationships, revenueof money. Either scenario is much better than losing
streams and much more.your shirt.