Common Questions on Writing a Business Plan

If you write a business plan, complete with a break-even analysis, profit-and-loss forecast, and cash flow projection, you can tinker with your idea and improve it before you start. On the other hand, you may take an honest look at the numbers and find that hoped-for profits are unlikely to materialize. In this case, one of the most important purposes of writing a good business plan is to talk yourself out of starting a bad business.

How do I write a business plan?
The structure, content, and format of your business plan will depend on your business idea and your intended audience. If you're trying to raise money from investors or borrow money from a bank, your business plan will have to present solid financial data and market research in a professional, polished package. On the other hand, if you're funding your business yourself, you can probably forgo the sales pitch (and the fancy paper), but the basic principle is the same: Do your homework and create a business plan that gives you a realistic picture of your proposed business.

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