What is a business plan?

A business plan is a formal statement of a set of business  goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals.

Business plans may also target changes in perception and branding by the customer, client, tax-payer, or larger community. When managing a business, a business plan, or B-Plan, is often confused with the term Marketing Plan. When the existing business is to assume a major change or when planning a new venture - a 3 to 5 year business plan is essential.

Why is your business going to succeed?

Seriously, write down why you think your business is different, better or simply going to survive out there in the real word. What are the main things that give you the edge?

Goals and Direction. Where are you going?

Where do you want your small business to end up? What goals do you have in mind, to make money? to benefit your community? to save lives? to research? And include what YOU personally want out of the business, do you want independence, no boss, security, regular pay. I suggest rating your goals in order of importance.

Risks

Well now that you know your goals, what are the risks to your goals. What will happen if you are injured, or if your business is robbed? What could happen if a competitor opens up near by? Don't gloss over these! They are important, you must be realistic about what could go wrong, so that you can act to avoid the risks. Risks must be managed, not ignored. Saying 'It won't happen to me' will not help after the fact.