Every business should first start with a business plan. Whether it is a small, medium or large-scale business, you need a plan in order to give form to your business. What exactly is a business plan? This website explains it in detail.
A business plan is a blueprint. This guides your business right from the start up to its establishment and then to its growth. Every business should have a business plan. The business plan is different for each business.
You may also need finances from an investor or from a financial institution to start your business. In order to approach them you need to have a traditional business plan based on which the institution may sanction you a loan. The traditional business plans are long and detailed. These also have sections that would generally interest the investors to invest into your business.
However, in case you do not want to approach any institution or any financial support then you could do with a simple business plan. This is for your use and it could be as small as a single page. The business plan gives you clarity of what you want to achieve from your business and how do you plan to achieve it. The business plan that you create is not the final plan that you will have. It will need improvement with time and you need to keep changing the plan based on the current business scenario.
Finances for the business
A very important thing that you need to plan is how you wish to raise the money to run your business. If it is a small business, then you do not need a lot of money. However, you will have to make some initial investments in the business in order to cover the regular expenses before your business starts to give profits.
Have a clear plan on how you plan to raise the capital and how you plan to use it. A spread-sheet can help. The initial capital is the amount of money that you need to spend towards the permits, licenses, insurance, legal fees, branding etc. You also need to plan for capital to keep your business running at least for a year before it starts to give profits. This includes utilities, rent, advertising, travel expenses, salaries of the employees etc. This total amount is the initial investment amount that you need to start your business.