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Size and complexity determine the need or not for a business plan. I've ran successful small businesses without writing anything, and I know others doing the same.

However, research shows that businesses that write down their business plans tend to succeed at a higher rate than do businesses that do not write down their plans. For that reason alone, write down your plan if the size and complexity of your business suggests it.

One reason for the success of businesses that write their plans is that writing a plan forces you to look at all aspects of your proposed business. With sufficient complexity, planning a project without writing it down, too easily misses crucial factors.

Another reason is that a sound business plan is a valuable tool for attracting finance to your business. Your financial planning is particularly important in this respect. Adequate and proper accounting standards and sound well worked predictions of immediate viability and future profitability might convince investors or lending institutions to invest in your business.

Yet another reason is that a good plan enables you to predict your business's future and anticipate possible future problems.

A simple format for any business plan follows. You can simplify, delete or expand sections according to the needs of your particular business.

Business Profile
1. Business activity
2. Ownership structure
3. Business name
4. Entry strategy
5. Legal requirements
6. Business objectives

Marketing
1. Environmental trends
2. Industry conditions
3. Products
4. Competitors
5. Target customers
6. Marketing strategies
7. Marketing controls

Purchasing
1. Suppliers
2. Purchasing policy
3. Purchasing controls

Personnel
1. Management details
2. Staff
3. Organization structure
4. Professional advisors

Financial
1. Personal financial position
2. Establishment costs
3. Borrowing requirements
4. Financial forecasts
5. Financial records
6. Business insurance
7. Financial controls

Operational review monthly, bi-monthly, quarterly or annually.

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