A. A Business plan defines your market and puts you on the right path.

1. Location, Location, Location
1. How do you know where the best location is if you do not truly understand your market?
2. Who, besides you, thinks this is a good idea?
3. How much should you charge for your products and services?
4. What is the most cost effective way to advertise?
5. Who is your competition?
6. Who is your target market (customer)?

The number one reason new businesses fail is that they neglect to properly investigate their idea. They underestimate the cost of entry and overestimate expected earnings. A business plan defines and justifies your vision. It places your company in a position to move forward with a true depiction of what it takes to succeed.

B. Business plans sets the ground rules

The lack of financial resources is the second most common reason companies fail. Market analysis provides answers to two very important questions:
How much working capital will we need and what are our start up cost?

1. How long will it take to turn a profit?
2. How many employees do you need?
3. Who should you hire?
4. What does your organization look like?
5. Will you offer benefits?
6. How much working capital do you require?

C. Business plans entice investors

Investors will not supply funding to a poorly developed idea. Would you give someone half a million dollars just because they have an idea? Of course not! Investors expect a return on their investment. In order for this to happen, they require a well-developed business plan, ask many questions, and expect intelligent answers. Although a business plan never guarantees funding, it is a good indicator to investors of a company's viability.

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