The importance of a Business Plan

So you want to be a writer. That sounds all well and good but be prepared to deal with some business issues once you start if you have not thought about it before hand. When researching business start up procedures you will invariably note that a business plan is cited as an important aspect. In my opinion it should be the first thing you do when starting a business, any business. However, many freelance writers never bother writing a business plan for themselves for a variety of reasons. Allow me to tell you, though, that having a business plan as a freelance writer is very important. It will keep you organized and will prevent some issues that may arise by forcing you to think about them before they become problematic. If you have not written a business plan yet, start now.

Why Freelance Writers Don’t Write Business Plans

Let’s assume for a moment that you are a stay at home parent who is taking the odd writing assignment here and there. The thought here is that you are not really in business so why create a plan? How about the part time student who supplements their income by writing? No need for a business plan here. Full time writers who have a handful of clients and are content with the status quo will not need a business plan. How about the serious blogger who makes no money at all? If you have no desire to expand, to take on investors, to borrow money or to hire employees you will not need a business plan.

Is this correct? Absolutely not! No matter how big or how small the operation it is imperative to have a business plan.

Why do you Need a Business Plan?

Regardless of the size of your business, you need a business plan for one simple reason: to stay organized. You may think you are organized enough with what you already have but until you have a solid map of how you will operate you will not maximize your efficiency. A business plan makes you think about where you are, where you want to go and how you will get there. A business plan allows you to make projections and put down on paper your goals and ideas so you can systematically tackle each aspect of your company and it will run smoothly. It is a living, breathing document that not only can change over time but should. Even if you only work part time, bring in very little income (or none at all) and are happy with that and have no plans of expansion a business plan will keep you focused and organized.

A business plan is a necessity for any type of business as a valuable internal document. It forces you to consider important business issues that you will want to have answered before they become a problem. However, if you do have hopes of getting credit extended or bringing in an investor you will get nowhere without a documented business plan.

What is in a Business Plan?

A business plan is comprised of several sections: Executive Summary, Market Analysis, Company Description, Organization & Management, Marketing & Sales Management, Service or Product Line, Funding Request, Financials and Appendix. Within each section there are details that should be addressed. I will not rehash here what is readily available on the Internet, though. So, go get the information and start writing. Not only is it a good business practice but good practice for business writing. If you want to try your hand at any type of business writing, having a clear understanding of a business plan is a good idea.

How do you put a Business Plan Together?

I highly recommend using the Small Business Administration (SBA) to help put together your business plan. They have sample plans available for review and templates you can use to put together your business plan. If you are really serious about your business and have spare cash available you can also hire a consultant to help you with it but it really is not, in my opinion, a necessary expenditure. You know what you want for your business and you have the tools available to research everything you need to compile a plan.

I understand how easy it can be to start working and forget about the business plan. You may very well be trucking along thinking everything is fine without one, too. But, I can not stress enough how important having one is. There will come a time when you reach a critical juncture in your business that you do not know how to handle and you will have to scramble to resolve it. However, if you have a business plan you will already have a means of solving the issue because you already thought of the problem and constructed a solution.

If you have not yet written a business plan it is not too late to start one now.