According to Richard Greene, in his book, From One Entrepreneur to Another.How to Start, Manage, Grow and Exit Your Own Small Business,

“The business plan is a guide toward achieving profitability as quickly and economically as possible. It is a plan for orderly growth. It is designed to help you raise capital.”

And according to Black Enterprise Guide to Starting Your Own Business by Wendy Beech,

“Every business owner should craft this important document before hanging out a shingle, but few do. Instead, many business owners fly by seat of their pants and manage to successfully sail through first few years of their operation without a plan. However, when major problems crop up and threaten life of their company, owners must scramble to find and apply quick fixes.”

According to Oakland Business Development Corporation, a micro loan application should include a business plan that incorporates following information

– use of funds requested – cash flow – income statements – balance sheet – assumptions as to how you arrived at your numbers

Wendy Beech again writes,

“Creating a business plan will force you to think through all of essential factors that will impact success of your operation . . . Drafting a written plan will help to ensure that you have not omitted any significant factors that could kill your business. With a plan, it will be easier for you to communicate your ideas to potential investors, suppliers, partners, corporate boards of directors, and employees.”

Before you write your business plan

1. Identify audience to whom you’re writing – Internal audience – employees – co-owners – board of directors – partners – External audience – MICRO LOAN LENDERS – bankers – venture capitalists – vendors/suppliers – family members – friends

2. Specify type of business that you’re seeking to start