by Anne Gader

Created on: March 30, 2007   Last Updated: September 28, 2011

Here are some reasons why you should write a business plan if you are an entrepreneur starting out on a new business, or trying to grow a business.

1. Writing a business plan forces you to think more holistically about your business - from the sourcing, the marketing, the point of market entry, the pricing, the business model, business partners, and projected growth.

2. When you happen to meet an Angel or Venture Capitalist, and are asked to provide a business plan, you would already have one, and would not have to scramble to put something together.

3. A business plan prepares you for your next steps.

4. Writing a business plan, or generally simply writing a plan down has proven to be helpful in internalizing your vision, strengthening the imagery in your mind to help you become successful.

5. A plan gives you clarity when you are feeling down, and need something to focus on.

6. Putting your business down into words helps you give a more prepared reply to potential clients who may ask you tough questions.

7. It may help you ask yourself tough questions, and should there be a "deal breaker" that is discovered, it would save you a lot of heartache and effort.

8. On the other hand, it may provide you with more determination and conviction that your plan is going to work.

9. Sometimes there might be business plan competitions that you could enter, and win some seed money to jump-start your project. Caution: Do not provide patent-worthy information when presenting your business plan!

10. If you can't even take some time to write a business plan, are you sure you can last the distance to build that business?

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