Do you need a business plan?

When I launched Atomic Dumpling with my business partner, we didn’t have a business plan. Instead, we had an idea checklist and stuck with it. The reality is that we had set up the checklist to think about the things we wanted to do with our side project, which for all intents and purposes, is what Atomic Dumpling started as. We didn’t think we needed a business plan until we realized we did need one.  So do you need a business plan or not?

Yes, and I know it sounds confusing, but a business plan is essentially a guide. After a few months of working together, we realized that a plan would help us be clear on our mission.  

A business plan takes you along the stops of starting up and running your business from its infancy. Now what makes it a great tool is that this document is continuously updated as your business grows. It communicates succinct information to partners and investors.

How long is too long?

Your business plan needs to be long enough to convey important information. What do you consider “important”? That is a question specific to each business if you are writing to interest investors and partners.

Start out by listing a series of questions that will help you determine what style of business plan you need.  

1. What is your business going to offer as far as products or services?
2. What are your resources & activities?
3. What will the cost structures & revenue streams be?
4. How do you plan to set up your customer relations?
5. What is your marketing plan & strategy?
6. Do you have a funding request?
7. Will you have financial projections for Q1 or A1?

Depending on your answers, you can narrow down how long your plan will be. You can also determine which form of business plan you would like to use. Traditional business plans tend to be longer than a single page, unlike a Lean business plan.  

What are the differences between plans?

There are two styles of business plans both are well known. The first, aptly, is called the traditional business plan and is sectionally written and typically has multiple pages. The second is called a Lean business plan and is more simplistic.  You can download free examples of either from the Small Business Administration. You can create either to suit any business need. It boils down to your style of writing and what information you feel is important to convey.