Benefits of Writing a Business Plan - dummies

By Steven D. Peterson, Peter E. Jaret, Barbara Findlay Schenck

You’ve reached the point where you actually write your business plan. Hopefully, the business-planning spadework is behind you. By now, you’ve defined your business purposes, assessed your business environment, charted your strategy, detailed your company capabilities, designed your marketing plan, and untangled your finances. The next step is to assemble the raw materials into a formal written plan.

Here’s a note for people who rank the idea of writing right up there with paying taxes or for people who find putting one word in front of another as excruciating as rolling boulders up a hill: The following pages keep the process easy. Plus, the effort you make now will payoff in many ways:

  • Making good ideas even better: Putting your plan into writing makes it easy to see which ideas don’t hold water and which ones look even better when you take time to develop them.

  • Developing a plan of action: Like many entrepreneurs, you may have dozens of ideas rattling around in your head. Organizing them into a written plan forces you to think about how they fit together and which ideas should receive priority status in your action plan.

  • Avoiding unnecessary mistakes: Your written plan is the first serious test of your business venture. If your business doesn’t make sense on paper, what are the odds that it will pass muster in the fiercely competitive world of business?