Can You Really Afford to ‘Skip’ a Business Plan?

When preparing to launch a business, money is always an issue, but is doing without a business plan an option?  In an effort to trim expenses, some entrepreneurs skimp on the business plan. The business plan is not only one of the most basic steps in forming a new business, it can actually make or break a business before the first transaction is ever consummated. Without a solid professionally prepared business plan, a fledgling business to be may never reach its potential — or even exist.

A professionally prepared business plan is an announcement to everyone that your business is serious and that you consider this undertaking seriously. It lays out not only how much money you have found is necessary to properly launch your business, after careful deliberation, but how you intend to make that money back in a sound and responsible manner. It provides you with an opportunity to show potential financiers that you are fully in control of every aspect of operations and ready to succeed.

A professionally prepared business plan is also a dry run of sorts. It provides you with the opportunity to look at everything on paper prior to committing major resources to them. If there is a weakness or flaw in your thought process, they will come out while preparing the business plan and provide you the opportunity to reformat everything prior to presenting it. While there are areas you can skimp on when launching a business, skimping on the business plan is never an option.