The plan defines where the business plans to operate and your business experience. Parts of the plan include a market study, promotional strategies, current and projected balance sheets, current income statement, and a cash flow analysis. It outlines how, when, and where financial support will be obtained and outlines a plan to repay those loans. It provides general operating information. A business plan helps clarify where the business is now, where it has been, and where it is going.
Business plans have three different uses.
There are many resources available to help develop a business plan such as Small Business Development Centers and the Service Corps of Retired Executives. Computer software programs are available that can guide plan development. Workshops for developing a business plan are offered by universities, community colleges and vo-tech schools. Your commitment of personal funds is often the first financing step. It is an indicator of how serious you are about the business.