The importance of a comprehensive,
thoughtful business plan cannot be overemphasized. Much hinges on
it: outside funding, credit from suppliers, management of your operation
and finances, promotion and marketing of your business, and achievement
of your goals and objectives.
"The business plan is a necessity. If the person who wants
to start a small business can't put a business plan together, he
or she is in trouble," says Robert Krummer, Jr., chairman of
First Business Bank in Los Angeles.
Despite the critical importance of a business plan, many entrepreneurs
drag their feet when it comes to preparing a written document. They
argue that their marketplace changes too fast for a business plan
to be useful or that they just don't have enough time. But just
as a builder won't begin construction without a blueprint, eager
business owners shouldn't rush into new ventures without a business
plan.
Before you begin writing your business plan, consider four core
questions:
- What service or product does your business provide and what
needs does it fill?
- Who are the potential customers for your product or service
and why will they purchase it from you?
- How will you reach your potential customers?
- Where will you get the financial resources to start your business?
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