Stop writing that business plan! You don’t need it. There are only two reasons to go through the hassle of writing a business plan: To raise funds or to go on an ego trip.

What else is there? Well, there are internal studies of all kinds, some with big diagrams and a lot of verbiage. But those are not “business plans”.

No. A “business plan” means money.

Counselors in government offices and college campuses repeat the mantra “make a business plan” as if it were real. It’s not real. It’s not even being honest. When I advise prospective business owners, I ask two questions:

1. Where are you now?

2. In which direction are you headed?

Those are not always easy to answer. But that’s what you need to know before building your business.

Starting a business means you need a direction, not a specific goal. Our world is changing so rapidly that the future is a moving target. Being able to adapt to changing conditions and reassess your marketing on an almost daily basis is much more important than saying “I need 100 customers a day to be successful.”

Most business owners need to do background work on potential customers, or file a patent, or any number of issues. And, yes, it is necessary to complete the ELEMENTS of a business plan.

You need to do some basic research on your market and know, really KNOW, that the market is there.

You need to research your competition and determine why your company is better.

You need to run some pretty good numbers. Calculate how much it will take and make sure you have it.

You really need to stay on top of your niche. There are so many changes in the market every day that no business person can afford to be indifferent.

But you don’t need to write a business plan unless you plan to raise funds. If you don’t plan to raise funds soon, don’t. You are wasting valuable time that you should be spending on your business.

Putting together a business plan is different than just having all the information in your head or in your desk drawer. The business plan is a persuasive document designed to convince lenders that you have a great business. It is a sales tool. It is built with nods to graphics and layout, as well as information.

A business plan is not complete. It can’t be. It should only be between 20 and 25 pages, and you can’t put everything in that space. It is selective in its disclosures, those disclosures being basically in favor of the business. It is a document that tells lenders and investors:

~Why this is a great deal;

~Who is on the team;

~ Why the market is strong;

~ Why the price is right;

and most importantly,

~ How the lender/investor will make money.

“Knowing” this yourself is one thing. Convincing a lender is another matter entirely. And that’s why you write a business plan.