Not only is a business plan an essential part of setting up a business, it's actually one of the first things you should do and, very importantly, has to be done right if it's to be of any use. This is why it's often best left to the professionals to ensure your business plan will work hard for you, for example, getting the funding you need to launch your business. Don't think that you won't need a business plan just because you're not seeking a loan as your plan will also help you think through all areas of your business. Think of it as a roadmap to success navigating you through the inevitable ups and downs of entrepreneurship.

Here we look at why you need a business plan - a well written business plan that is.

 

Setting up a Business – your business plan will enable you to see the steps required to start your business including what needs to be done and how you will go about achieving your aims.

Is it a Feasible Idea? - by setting out your financial forecasts and identifying your target market you will be able to see if you have a sound business idea.

Monday saw the launch of a national mentoring scheme with an aim towards educating small business owners on the requirements for getting bank finance. Backed by the British Bankers’ Association, The Prince’s Trust and others it is the latest in a series of plans to try and create meaningful change within the area of access to finance.

 

Somewhere in the region of 200 current and former bank managers will initially be made a ready resource for small businesses. The hope is to guide company owners through the processes involved in applying for a loan. It is the government's hope that these bank-sponsored, trained mentors will form the core of a much larger network of support. This is in response to the closure of its Business Link advice centres which are set to conclude this autumn.

 

Your article this morning in connection with the closure of support networks for business does highlight some potential shortcomings when it comes to Government policy on nurturing start-ups and growth businesses.

The demise of Business Link as you point out will not be missed by many, but on the whole, our experience of the organisation was positive. Nonetheless, reform was due, but will a group of volunteer mentors be able to provide the support required. After all, this is a commercial world, and therefore mentors will look to be recompensed as individuals take advantage of their knowledge. As your contributor Nick Wall comments, he estimates his advice would have cost him £100,000.

Whilst we are seeing the closure of support networks, I note that Nick Ogden is starting up business.co.uk. Although I have yet to investigate the portal in any detail, it can potentially provide an avenue for companies to seek advice.