Most people first hear the words, “you need a business plan” after they attempt to secure financing to start a small business. Those words, heard at that time, leave you feeling confused, but determination to realize your dream, propel you to “get a business plan” so you can get the money you need to start your dream.

 

You set out to get your business plan. You do what almost all of us do now when we want to learn something, we log on to our favorite search engine and begin the search.  Within seconds you have access to thousands of resources for you to sort through, read, download and use.  Most of the top search results will align with why you, at this stage, think the main reason you need a business plan, is to obtain financing.  If you’re patient and adept at your search you may find a business plan template to use.  How exciting!  You download it and are excited because you’re thinking you’re almost there.

 

You open the download.  New words start jumping out at you.  Executive Summary, Environmental Analysis, Legal Form of Organization, Intellectual Property, Market Analysis, Pro-Forma Financial Statements.  Now a little bit of anxiety sets in and questions begin swirling.  What IS all of this?  Why do I need all of this?  I just want to start my business, I know what I want to do, why do I have to do all of this?

 

You have to do all of that, because starting and sustaining a small business is a lot of hard work.  But it requires more than sweat, long hours and a good idea.  Success as an entrepreneur, small business owner or as a self-employed solopreneur, in today’s economy, requires you understand the functions of a small business and execute the skills required for success. Going through the process of developing a business plan will enable you to learn about foundational business concepts while identifying your current and needed entrepreneurial and small business management skills. 

 

A business plan is never done. It is evergreen and elastic.  When you go through the process of developing a business plan you will learn; and apply what you are learning, immediately, to further develop your dream into reality.  As your business plan begins to take shape you will further develop your problem-solving, decision-making, creativity, analysis, communication, financial management, strategic, visioning, networking and leadership skills. It is the identification and expansion of these skills combined with learning about basic business concepts like developing a mission, goal-setting, management, financial and marketing strategies that prepare you well for the small business journey.

 

The real reason you need a business plan is because the process of developing a business plan will enable you to become a subject matter-expert while building the skills needed to be successful in operating a sustainable small business.  The business plan will become one of your most important management tools. And yes, you will be able to use it to get financing.