Updated: Jan 5, 2022
If you’re like most entrepreneurs, your business sprang from an idea or vision you had in your head. As a creative thinker, you probably had a pretty detailed concept of how you wanted your business to work. But if you expect other people, such as partners, investors, and loan officers, to understand your vision, you need to write it down as a strategic document. That’s where the business plan comes in.
A business plan describes the nuts and bolts of your business and explains how you’re going to reach your goals. It’s particularly important for an entrepreneur just starting out or an emerging business that is looking to take the next step down the expansion and growth path.
Your business plan is built on future assumptions and no one is 100% accurate in predicting the future. So review and update your entire plan at least annually. Consider reassessing the financials monthly or on a schedule that corresponds to the closing of your books.