At Dale S. Goldberg, CPA & Associates, we deal with many new startup businesses. We have seen successful businesses and many more unsuccessful ones. A question we often get asked is “does a new business need a plan”. This post explains why, in most cases, it’s preferred and necessary.
Quite often a new business is in need of funding to help them get started. The new business goes to the Small Business Administration (SBA) or a bank and is asked by those institutions to create a business plan. The next thing we know, a new business owner is asking us “what is a business plan and why do I need it?”
The Importance of Having a Well-Established Business Plan
A business plan is essential for any new business. It is a written presentation that, among other things, details the essential facts of the business you are about to start. A good plan serves as a road map or strategic plan that should be constantly updated as facts or assumptions change.
Business plan readers usually want to know about your background, expertise, and how that fits with the business you are about to start. A good business plan also explains:
- information about your competition;
- how you plan to get business;
- how you intend to operate your business; and
- the steps you will take to form, start and run your business.
A good plan details your niche and includes a financial forecast or projection showing expected:
- cash flows; and
- necessary funding.
Enact Your Ideas With a Business Plan!
A business plan is a great exercise because it forces the entrepreneur to reduce to writing his or her ideas. The Service Corps of Retired Executives (SCORE) offers workshops for new business owners to help understand business plans.
Other great sources of help include QuickBooks, B plans, and Entrepreneur.com. Each offers advice and templates to guide you through creating this document.
Does a new business need a plan? Yes, and it’s easy to get lost in financial information without a map. To this end, our firm excels in assisting new companies on how to put together business plans. Call us today (215.342.4200) if you want help getting started.