A Business Plan ensures that business objectives are clearly spelled out that sales are properly forecasted and that cash requirements, including emergencies, are correctly identified. A proper Business Plan selects target customers, anticipates the cash needs and provides for unexpected situations. At the same time, your Business Plan is a major tool in obtaining credit because it shows that the business is run according to a well-conceived Business Plan. Included in the Business Plan should be your expected response to future contingencies. Putting your Business Plan on paper forces you to be organized in your thinking and realistic in your expectations.
Information is the key to starting a business and staying in business.