Common Questions on Writing a Business Plan

Learn the what, when, why, and how of business plans.

What is a business plan?
A business plan is a written document that describes the business you want to start and how it will become profitable. A business plan usually begins with a statement outlining the purpose and goals of the business and goes on to show how the business owner will realize those goals, including a detailed marketing strategy. A complete business plan also contains a formal break-even analysis, a profit-and-loss projection, and a cash-flow analysis designed to show that if the business develops as expected, it will make money.

Do I need to create a business plan even if I'm not going to borrow money?
Absolutely. A business plan isn't just window dressing to attract potential investors or market your business to potential lenders. A solid business plan should sell you, the potential owner, on the financial viability and soundness of your business idea.

Creating a business plan will force you to think about key issues before you start your business—such as how you'll raise money and what your projected start-up costs and marketing strategies are—and will help you figure out if your idea is a winner.

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