A New Jersey resident who wants their small business to succeed may need to form a business plan. The document clearly sets out what the business does, what the start-up costs may be, the marketplace strategy, the anticipated challenges and the intentions of the founders. Expectations of profitability and the results of market research are also delineated in the business plan, and a good business plan is especially important for small businesses that wish to procure loans or credit.
When forming a business plan initially, it can be important for the individual drafting the document to make honest and realistic estimations. Failure to include realistic projects of profitability and costs can make it difficult for a business owner to plan for the future, and using object figures in the plan can help an entrepreneur avoid excessive risk.
Finding investors and attracting professional capitalization may also be difficult without a properly prepared and presented business plan. Generally, the size of a potential loan may rely on the financial information available in the plan. Potential profit, revenue and breakeven points should all be described in the document. It might also be helpful to organize the information in the business plan in a way that makes it easy to understand.
The aid of an attorney can be helpful to those who wish to craft an accurate, appealing and representational business plan. An attorney may be able to assist them in describing the new enterprise in the proper terminology. In addition to creating a plan that might increase the chance of receiving financing, an attorney may also be able to help a client understand how certain business formations might benefit or take away from the venture.
Source: Findlaw, “Before You Start Your Business, Try Starting a Business Plan “, September 04, 2014