{"id":5136,"date":"2016-04-04T10:47:57","date_gmt":"2016-04-04T15:47:57","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/before-you-start-your-business-try-starting-a-business-plan.html"},"modified":"2026-04-28T01:42:00","modified_gmt":"2026-04-28T06:42:00","slug":"before-you-start-your-business-try-starting-a-business-plan","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/before-you-start-your-business-try-starting-a-business-plan.html","title":{"rendered":"The Benefits of a Good Business Plan"},"content":{"rendered":"\n
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The Benefits of a Good Business Plan<\/h1>\n\n
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\n By Amber Sheppard, Esq.<\/a> | Legally reviewed by Amber Sheppard, Esq.<\/a>\n | Last reviewed\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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A business plan is a blueprint for an enterprise giving it structure from an idea to a reality. Business plan essentials include the following:<\/p>\n

Executive Summary<\/span>: <\/strong>Pitch to attract investors and lenders<\/span>.<\/p>\n

Market Analysis<\/span>:<\/strong> Identify potential customers and competitors.<\/p>\n

Financial Data:<\/strong> Project ROI, cash flow<\/span>, and break-even points.<\/p>\n

Operation & Management: <\/strong>Detail management structure and hiring needs.<\/p>\n

Legal Review:<\/strong> Ensure legal compliance with federal, state, and local laws.<\/p>\n\n <\/div>\n\n\n\n

Before you start your small business, start your business plan. Just as you wouldn’t build a home without a blueprint, you shouldn’t build a business without a business plan. Your business plan is your foundation for success.<\/p>\n

This article will discuss a business plan’s purpose, goals, and benefits. It’ll also answer many people’s questions when they contemplate writing a good business plan. Is it worth my time to write a plan? Yes!<\/p>\n

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Why You Need a Business Plan<\/h2>\n

There are several types of business plans for different stages of a company’s lifecycle and for different purposes and audiences. Each plan can help map out where you want the business to go and how you expect to get there.<\/p>\n

Your plan needs to be inspirational. You are creating the vision and defining the path toward an exciting future. When you share your business plan with potential investors, bankers, and business partners, you want them to be as excited as you are.<\/p>\n

Yes, a business plan includes research, data, and financial projections, but it also helps others understand how you will bring your entrepreneurial vision to reality. Taking the time now to craft a business plan will help you attract the support you need.<\/p>\n

A Business Plan Helps You Look At Your Business Objectively<\/h2>\n

It’s easy for prospective business owners to get caught up in their great ideas. Writing a business plan forces you to be objective rather than overly optimistic about your business. When you sit down and take an honest\u00a0look at the\u00a0components of your business plan<\/a>\u00a0\u2014 objectives, competitors, market conditions, market projections, and financials \u2014 you are better able to make rational decisions.<\/p>\n

Perhaps your great idea doesn’t stand up after that kind of review. A business plan should tell you the viability of your proposed new business venture. You want to know your chances of success before you sink time and money,\u00a0or other people’s money,\u00a0into the business.<\/p>\n

On the other hand, the planning process may give you a big green light. Armed with\u00a0concrete goals, measurable objectives, market research, and financial forecasts, your business plan not only tells you where you are going, it tells you how to get there.<\/p>\n

Business Plan Basics<\/h2>\n

A traditional business plan projects your company’s growth for five years. You can\u00a0view the contents of a written business plan<\/a>, so you know what each section of your business plan needs.<\/p>\n

So long as you follow the\u00a0business plan outline<\/a>, it will help you:<\/p>\n