Questions:

• What is a business plan?
• Do I need to create a business plan even if I'm not going to borrow money?
• How do I write a business plan?

Answer:

What is a business plan?

A business plan is a written document that describes the business you want to start and how it will become profitable. A business plan usually begins with a statement outlining the purpose and goals of the business and goes on to show how the business owner will realize those goals, including a detailed marketing strategy. A complete business plan also contains a formal break-even analysis, a profit-and-loss projection, and a cash-flow analysis designed to show that if the business develops as expected, it will make money.

For more information, see Business Plan Basics.