Do I Need a Business Plan?

We get this question from time to time. Some of our members comment that other websites and tutorials tell them to write up a business plan, but we don’t talk about it. So, let’s talk about it!

Is it necessary to create a business plan? It depends!

Let’s start with what a business plan actually is. A business plan, is a formal statement about your new business. What your goals are, reasons why they are attainable, and your plans for reaching those goals. It serves as a roadmap for your business that you can follow to help you reach your goals.

To get started with your business plan, you ask yourself specific questions like:
Why do you want to start a business?
Why do you want to sell online?
What do you want to sell online?
How do you plan on selling those products?

Don’t ask your friends and family to answer these questions. They can only be answered by you!

Write answers for each of those questions, and then start digging into the details.

For example, the answer to your first question might obviously be: “I want to make money.” But take that and add more details once you really think about it. For example, it could be that you have a fantastic idea & want to sell products that cater to a specific demographic, that you have found is missing and be as detailed as possible.

The last question, how do you plan on selling those products; this is where you would list out your marketing strategy and the services you plan on using to accomplish that.

You would also research costs to get an idea on how much “Facebook ads” would cost per month, or if you sell on eBay, what is the cost associated with that.. if you need legitimate wholesale suppliers then you would also list out WorldwideBrands.com and the cost associated with our service. Listing your costs is important. It will give you an idea of what you will need to spend per month or to get started to see if your ideas are feasible with your current budget.

As you write up your business plan, you research at the same time so you can truly be detailed with your answers. So a business plan can be something that takes quite some time to create, and of course you can modify it any time.

Now, let’s get to the answer for is it necessary?

If you plan on having a business partner, or want to take on investors for your business or even a business bank loan.

A well thought out business plan will let all parties know what they should expect with your business and help them to determine if they want to work with you or not.

If you do not have plans on taking on a partner, inventors or a loan, it’s not an absolute necessity. However, a business plan can also be used internally by you, and anyone that you work with, for YOU & them to understand what your goals are and how you plan to reach them. Think of it as a written detailed vision board 🙂

So is a business plan a necessity? If you are not going to seek outside monetary help, then no.
Should I write one anyway? If you need something to follow to make sure you don’t forget anything, then sure, you can write it up grocery list style, or go through the process of writing a detailed one.