If you are considering starting a small business, the first thing you should do is create a business plan.
Most people cringe at even the mention of writing a plan, but this doesn't need to be an overly elaborate document, and it doesn't need to be difficult to create.
If you hope to get a business loan or attract investors, a plan is absolutely essential, but even if you don't need financing, there are a lot of reasons why you should still have a plan.
One of the most important functions of a business plan is to act like a road map.
If you were going somewhere you've never been before, would you simply point your car in the general direction and hope to find the place? I suspect you wouldn't.
So why would you simply jump in and start running a business without a plan? The results of the driving trip and the business would be about the same; you'll find yourself lost.
So, how do you get started? You don't need to follow a set format or template for your business plan, but you may find it easier to do so.
The Small Business Administration (SBA) has resources available at their website to help you, as do many other sites on the internet.
If you are looking to get financing, you will definitely want to follow a template and develop a more formal plan.
If not, follow whatever you think will make it easier for you to refer back to in the future.
Every plan should include some basic information about the business, including a description of what the business does and how you intend for the business to grow.
You should also include some basic financial information, including your projections about your expected costs and profits.
If you are looking for some financing, you will also want to include some supporting documents with your plan, such as previous tax returns, any existing contracts, agreements or licenses, and maybe even your resume.
While the plan will be very important for financing, and can help you a lot when you are first starting out, it will ultimately be much more important when your business does start to grow.
If you've taken some time and really included the important information in your plan, you can now refer back to it to help you make important decisions on things like expansion or hiring.
Whether you choose to go through creating a formal plan with all of the supporting documentation or you choose to make a more simple plan for your own use to guide you along your path to success, you can not skip this step.
Without a plan, you're not giving your business the chance to succeed.