Take the Time to Write a Business Plan
A good business plan is necessary if you need to finance your new business but there are benefits to good planning beyond a banker's need for information. These are direct benefits to you, the entrepreneur.
One of the largest problems of a home-based business is developing credibility with vendors. Too often, people who start a business at home fail to move beyond the hobby mentality. Service providers and vendors have been burned before by these would-be businesses. Your ability to show a well thought out plan allows vendors to determine your needs, and assures them that you've taken the process seriously. You aren't as likely to be perceived as someone who is just going to make pin money, and maybe not pay their bill.
After weeks, or even months, of writing your business plan you will now have a very good idea about what you are about to risk. The plan has required considerable research into start-up costs and operating expenses. You will know how much business you will need to generate in order to cover your expenses. It gives a measure for your progress. It is difficult to determine how quickly the business will build, but from your projections you will be able to determine an approximate time frame before you are profitable.
When you have a written business plan you will have direction. Every day you will know what you have to do for your business. Don't trust your dreams to your memory. When the going gets tough, and you are experiencing doubts, you can look over your plan and have a direction to proceed.
Business Plan Resources
American Express Small Business
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