Why You Need a Business Plan

A business plan is vital to the success of your venture. So what are you waiting for?

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Perhaps the most important reason to put a business plan into writing is that the very process forces you to think through what you're doing and where your business is headed. But that's not the only reason smart entrepreneurs write business plans. Here are some others:

If you plan to borrow money, you'll need to show a written plan. Whether you're approaching a bank, outside investors, the SBA or others for cash, you'll be required to show a plan that demonstrates your ability and knowledge about your industry.

A business plan serves as both a historical document and a guide to the future. It lets you see what worked--and what didn't. Don't put off writing your plan. There are plenty of books and software to help you. Or ask your financial advisor for assistance.

Excerpted from Get Smart: 365 Tips To Boost Your Entrepreneurial IQ

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