Having a business plan will also assist in providing you credibility among potential investors.
It shows that you've analyzed and weighed options, so investors can move forward with full confidence in you and your enterprise.
Preparing a business plan is like outlining an itinerary for a road trip.
You'll want to have a clear, objective map that you can follow step by step while developing your business.
Create an executive summary describing the industry you wish to succeed in, and how and why you intend on doing so.
Then, list your company's strengths and weaknesses, opportunities for growth, and any threats that might hinder the achievement of those goals.
Based on advice from our expert sources, here are a few specific dos and don'ts to consider while formulating your plan.
It's tempting to dive into your business after reading success stories of similar companies.
Klein stated that the document doesn't need pages and pages of text; rather, it can include images, infographics and specifics "so that it can be used as a point of reference at any point in time to ensure that the business is on the right path and is meeting its goals." Your plan is there for a reason.
Don't be afraid to refer to it as much as possible — think of it as checking the map when you've made a wrong turn.