You don’t have to be making money, but they want to see something more than just a piece of paper.
If potential investors happen to request a business plan from you, ask them if they are actually going to take the time to read carefully through it. You can try to plan for the future, but your plan will never account for .
Roughly 30 of my close friends have taken some sort of venture capital or private equity financing.
And none of them raised that money by writing a business plan.
Your business will constantly evolve and change, and if you want your business plan to stay up-to-date, you’ll constantly have to modify it.
Once you start your company, you’ll soon realize that a lot of decisions will have to be made on the fly and that you will have to rely on your intuition. Small Business Administration, over 50% of small businesses fail in the first five years because of lack of capital and lack of entrepreneurial experience.But the problem with business plans is that they haven’t evolved with the business world.So, why would you spend time on something that is outdated?Having a road map helps you reach your journey's end successfully. They lay out the milestones you need to reach on your way to building a profitable small business.From finance to marketing, operations to sales, each part of a business plan helps you reach your goals.For those who take the time to research and write a plan, though, they often find that it helps them identify risks and possible roadblocks – and they can circumnavigate a detour that still lets reach their destination – a successful, thriving business.[Check out our best picks for business planning software] While writing a business plan can be frustrating (especially when you're writing one from scratch), there are plenty of online templates available to take some of the pain out of the process.There is no written document that can help you with any of this. As I mentioned above, writing a plan isn’t going to help you get capital.And if you are looking to gain experience, you are better off spending time working on your business rather than writing a plan.What deters most small business owners from creating a business plan, however, is taking the time to write it all out.Many are afraid in that doing so, they'll find their idea isn't so brilliant after all.