So many times businesses go wrong by not making a business plan. A business plan is one of the key factors to making a business successful. One reason a business plan is important is that it allows you to feasibly see where your business is starting and where it will be going. A second reason is that it allows you to gather your ideas on how much capital you will have to invest into your business. A third reason is that it allows you to see if you will be using investors to fund your business, if you don’t have enough capital to bring into the business.
Please do not cash out any retirement funds or 401K’s. Business is a risk and you do not want to risk your retirement on such a risky endeavor. Your retirement is meant for you to have when your elderly and a business is meant for you to build prior to your elderly years, don’t risk losing your retirement that is already invested money into another investment that involves a high risk.
A business plan is something that will be used as a beginning platform and will be used to build from as the business grows. It will be used to add an annual budget and for projection reporting. It is used to establish bank loans, a line of credit, government loans and entice investors. Without a business plan, most banks will not lend you money to start-up your business. There are several loans out there for start-up companies, funded by the government, so be prepared to show your business plan.
Written By: Ask Ms Mandi