Whether you are planning to get into business or have been in business many years, a business plan is essential to the success of your business.

Being a designated accountant (my apologies for the stereotype perspective), I am not a betting person. If I were to bet on something, though, it would be this: a struggling business will not have a business plan or, if they do, they have no idea when they last looked at it.

Think your business is an exception? Is your business stagnating, not growing and/or producing the profits you anticipated or would like to see? Do you have to watch the timing of when you pay bills? Do you agonize over whether you will have the money in the bank to cover payroll? Do you find yourself talking and pleading with banks more than you would like to? Do you wish you could get a bigger line-of-credit? Do you agonize over what your sales will be like next month, next season, or next year? Are you awake nights trying to figure out how to keep your staff busy?

If you answer yes to any of the above questions, a business plan could be of great benefit to you.

You have done business plans in the past? Good. That is a start. Yes, it is just a start. Your business and the world are not static, so why should your business plan be? A business plan should be reviewed and updated on a regular basis (once or twice a year). If there is a major change in your business, the economy, the market or any other conditions affecting your business, your plan should be updated immediately.

Some people claim a business plan is a waste of time. Upon investigation, I find they either have no business plan, or if they did one, it was poorly done, the business plan was not followed or updated regularly.

Examples of a poorly done business plan includes unrealistic figures, lack of research, use of assumptions, too much emphasis on some areas and not enough on others or the business owner(s) had very little input into preparing the plan. Another major downfall is a business plan that goes on and on and on.... Of the poor business plans I have seen, the record holder exceeded 200 pages! For a small business (taxable income under $200,000) an effective business plan’s final version usually runs 10 to 12 pages plus attachments.

A business plan has five main parts: an executive summary; marketing, operating and financial plans and supporting documentation.

Should you enlist a professional to help? Yes. A professional that has experience in the field, that is. Should the professional do the plan for you? NO. You must be a part of the development of your plan otherwise you will probably not follow the plan. A professional should be used for guidance, to critique the plan and to polish the final product.

In the end, not only do you benefit from a properly done business plan but it also reduces the paper ready for recycling (the plan itself) and helps your entire life run smoother – and that includes dealings with banks!

This article is provided for information purposes only and should be used only in conjunction with the appropriate advice about your specific situation from an appropriate professional.