Going into business without the business plan is like running blind on a freeway against the traffic. We hope not get wiped out, but sooner or later we will. This is so true yet so many entrepreneurs seem to plough ahead into the business doing first, thinking second, and we all know where they have ended up.

A business plan is a document that should be created primarily for the purpose of serving the business owner and the business. A good, well written business plan creates a sense of confidence within the business that gives the business a daily true North to steer to. It needs to be a reference document that is read and reviewed on a regular basis. A good business plan will give not only a final destination but also a mapped out course with milestones and checkpoints to guide the business from where it was to where it should be.

The business plan is also used to raise start-up capital (seed funding), angel funding, venture capital funding or even assets funding. The business plan is also vital when looking for partners, contracts or tenders.

So what does a business plan contain? There are many many templates out in the marketplace that can be found on the web each with its own criteria and format. Selecting the incorrect format could be hazardous to both the process and the purpose for your business. In coming posts throughout this month we will explore various options and layouts and give you links to possible formats and templates that can be used in different circumstances.

I want to close this post with one vital bit of information; your business plan must never be written by somebody not connected directly with the business. We have seen too many business plans written by contract consultants that are a copy and paste job filled with crap and misinformation, these business plans are no good for anything other than maybe toilet paper.