Getting started in a new business requires a lot of work, not least of which is planning. Although many business owners claim to little or no formal planning, even most intuitive of them have some idea of what they’re trying to accomplish and how they hope to do it. However all successful entrepreneurs know that planning is essential to success.

No amount of hard work can turn a bad idea into a profitable one: The health food store in meat and potatoes neighborhood and child care center in a retirement community are probably doomed from beginning.

Planning forces you to think ahead. Before you rush in to supply a product, you need to be sure that a market exists. You must also try to foresee some of problems that might arise and figure out how you will deal with them.

One of first steps you should take toward starting a new business is to develop a business plan, a written document that summarizes and entrepreneur’s proposed business venture, communicates company’s goals, highlights how they plan to achieve those goals, and shows how consumers will benefit from company’s products or services.

Preparing a business plan serves two important functions: First, it guides company operations and outlines a strategy for turning an idea into a reality. And second, it helps persuade lenders and investors to finance your business.

Although a business plan has a simple and straightforward purpose, it still requires a great deal of thought. For example before you open your doors, you have to make important decisions about personnel, marketing, facilities, suppliers, and distribution. A written business plan forces you to think about those issues and develop programs that will help you succeed.

If you are starting out on a small scale and using you own money, you business plan may be relatively informal. But at a minimum, you should describe basic concept of business and outline its specific goals, objectives and resource requirements.

A formal plan, suitable for use with banks or investors, should cover these points:

- Summary In one or two pages, summarize your business concept. Describe your product or service and its market potential. Highlight some things about your company and its owners that will distinguish it from its competition. Summarize your financial projections and amount of money investors can expect to make on their investment. Be sure to indicate how much money you will need and for what purpose.