’ll discuss that a little later.

In additional to these "operations" sections, your plan will have some informational sections that will be used in setting the operational goals. For example, what is the market opportunity that your company is pursuing? How do you know that the opportunity

This article was originally called "Do You Need a Business Plan?"

The title was changed because in truth, every business needs a business plan. It’s a common misconception that business plans are used only for raising capital, as in "my bank wants to see a business plan before they will approve a loan," or, "I need a business plan so I can get venture funding."

But a business plan is really just what it sounds like: a plan for running your business. It’s an essential tool for making sure that nothing is overlooked.

The business plan will usually be divided into sections relating to the key activities of your business, such as Sales, Hiring, Manufacturing, and so on. In each section you will list the major goals and tasks to be accomplished, and the steps needed to accomplish them. The steps should be in the form of a schedule, with a clear description of when each task will be done, who will perform the task, and what resources are needed. For very small businesses you may plan a year in advance, but a more typical planning timeframe is three to five years. Obviously your plan will be more detailed for the first year, and things will change over time - I’ll discuss that a little later.

In additional to these "operations" sections, your plan will have some informational sections that will be used in setting the operational goals. For example, what is the market opportunity that your company is pursuing? How do you know that the opportunity

approve a loan," or, "I need a business plan so I can get venture funding."

But a business plan is really just what it sounds like: a plan for running your business. It’s an essential tool for making sure that nothing is overlooked.

The business plan will usually be divided into sections relating to the key activities of your business, such as Sales, Hiring, Manufacturing, and so on. In each section you will list the major goals and tasks to be accomplished, and the steps needed to accomplish them. The steps should be in the form of a schedule, with a clear description of when each task will be done, who will perform the task, and what resources are needed. For very small businesses you may plan a year in advance, but a more typical planning timeframe is three to five years. Obviously your plan will be more detailed for the first year, and things will change over time - I’ll discuss that a little later.

In additional to these "operations" sections, your plan will have some informational sections that will be used in setting the operational goals. For example, what is the market opportunity that your company is pursuing? How do you know that the opportunity

relating to the key activities of your business, such as Sales, Hiring, Manufacturing, and so on. In each section you will list the major goals and tasks to be accomplished, and the steps needed to accomplish them. The steps should be in the form of a schedule, with a clear description of when each task will be done, who will perform the task, and what resources are needed. For very small businesses you may plan a year in advance, but a more typical planning timeframe is three to five years. Obviously your plan will be more detailed for the first year, and things will change over time - I’ll discuss that a little later.

In additional to these "operations" sections, your plan will have some informational sections that will be used in setting the operational goals. For example, what is the market opportunity that your company is pursuing? How do you know that the opportunity

ach task will be done, who will perform the task, and what resources are needed. For very small businesses you may plan a year in advance, but a more typical planning timeframe is three to five years. Obviously your plan will be more detailed for the first year, and things will change over time - I’ll discuss that a little later.

In additional to these "operations" sections, your plan will have some informational sections that will be used in setting the operational goals. For example, what is the market opportunity that your company is pursuing? How do you know that the opportunity

’ll discuss that a little later.

In additional to these "operations" sections, your plan will have some informational sections that will be used in setting the operational goals. For example, what is the market opportunity that your company is pursuing? How do you know that the opportunity is real… what research have you done? Who are your major competitors, and what are their strengths and weaknesses? The information sections are especially important if you are using your business plan to raise capital, but they should not be neglected even if your company is self-funded. The information you gather about the market and your competitors is literally the foundation of your business plan.

The final key piece of your business plan is the financial section. At its simplest, this is just a running budget showing your projected expenses and income on a month- by-month basis, for the next 1 to 5 years. You can create this with a spreadsheet program.

In the operations section of your plan, you included a schedule of tasks, and that schedule should match your financial plan. For example, if you said that you would start advertising in April, you would spend $1500 per month, and the result would be a 20% increase in sales, then the $1500 per month advertising expense, as well as the increased sales, should be included in your financial plan.

Banks and venture firms will require the financial plan to be in a specific format; you may need an accountant to