Why a Business Plan is Important

Many young people starting a business usually do so as a gut feeling. It is good to be inspired but there is more to business than just happy feelings. You need a plan. This is where it also gets hard as many do not believe they need a business plan when they are so sure of themselves.

Recently someone asked me why they needed a business plan if they were getting all the funding they needed from friends and relatives. It sounded to me as if they were thinking of a business plan as just a fund-raising tool. In fact, a business plan is much more than that: It's a tool for understanding how your business is put together.