It is necessary to have a clear view and it is essential if you need to ask for a loan to have a business plan. They will want to know where you are planning to go and how you are going to get there. If they are going to take a risk with you they will desire to know what your plan is about from the inside out.

First, it helps you with a vision for growing your business and will greatly improve the chances that your business will succeed. It is estimated that as many as 90 percent of all small businesses fail in the first two years.

Have you ever known a contractor to build a home without a blueprint or a seamstress to sew a dress without a pattern? A business plan is a document that is a valuable tool that acts as a chart for your business

If anyone is willing to take out a loan and put so much time and effort into a dream, why not continue with the full draft? Some may not be willing to take the time to create a solid plan, while others might not be aware of how or even that they should process such a blueprint.

What you include in your business plan is based on the type of business you are operating and the purpose of the plan itself. There are general guidelines that are available in the Internet and at the library.

If you are writing the plan to secure funding, you should check in advance if the financial institution has any specific requirements it wants to see in its loan application. If the plan is for your own use it can be more flexible.

Either way, the Small Business Administration has an excellent example of what should be included in a business plan. A suggested business plan outline is as follows.

Market Analysis - A description of your market and the demand for your product supported by documentation. General highlights, and marketing research with details attached.

Company Description - A look at how all of the different elements of your business will fit together, be successful and profitable.

Organization and Management - Who your key players will be, their expertise, and experience.

Marketing and Sales Strategies - How you will promote and distribute your business and product.

Products and Services - What your products and services are, and is there a need for them and why.