Kicking off the new year means new ventures and for many entrepreneurs the new year represents new projects. Many entrepreneurs underestimate the need for a business plan and a mission statement.  If your business doesn’t have these, now is the time to create them.  Business plans and mission statements are powerful tools that will help move your business forward. 

Whether or not you will be borrowing money or seeking investors for your business, you need a business plan. Putting time and thought into a business plan not only helps you determine whether your business is viable, but it establishes a road map to guide your company. If you don’t have a business plan – something in writing – it’s likely your business could drift along without much direction or purpose.

Many entrepreneurs put off putting together a business plan because they’ve heard it’s a laborious task or because they feel they have to hire someone to create an elaborate document. Yes, it is a laborious task and a necessary tool but it does not have to be elaborate.  Consider hiring a writer to help fine tune the document; you can write the initial version.

Taking the time to write your plan will force you to think through your business strategy and business model, and once you’re done you will have a clearer picture on whether your business idea will work. Having a business plan prepared will also help you hone your “elevator pitch” when you go to business and networking events so you can tell others about who you are and what your business does.

If, down the road, you decide you need to borrow capital for your business or if you want to seek investors, you will have your business plan ready at a moment’s notice. You don’t want to have to think about writing a business plan spur of the moment, a few days before you meet with a potential investor, do you? And think about it, if an investor requires a business plan before he or she will loan you money, shouldn’t you take the same diligent approach before you invest your own hard-earned money into a new venture?

Here are some reasons to put your business plan in writing:

1. It defines what your business is and does
2. It helps you determine whether your business idea is viable and if you can look forward to making a profit
3. It helps hone your start up costs and channel them to the correct avenues
4. Helps you put together your marketing plan
5. Helps you determine who your competitors are and where you fit into the marketplace

Penning your business plan forces you to think in creative ways about your business and perhaps even come up with ideas you hadn’t considered before. With a business plan, you will be setting goals and implementing metrics to measure and guide the outcome.

The business plan should be between three and five pages long – a plan that keeps you focused, helps chart the business’s course and keeps you accountable to both yourself and your clients.