Make your map: preparing a persuasive business plan.

• Author: Wilhite, Brent
• Position: Small Business Advisor

WHETHER YOU WANT TO SECURE FINANCING for a new venture or lead your company through an upcoming growth period, a solid business plan is your trail map to success. A valuable management tool, the business plan allows small business owners to scrutinize and understand every detail of the company and its goals.

In November, UB explored business financing options for small business owners. Sheila Camarella, KeyBank's vice president and relationship manager of small business banking for Utah, explained, "A solid business plan is the most critical piece of information a potential borrower can provide us."

"You must have a business plan if you want to be taken seriously for funding," says Chad Pieczonka, a consultant at the Salt Lake Small Business Development Center (SBDC). Pieczonka and the SBDC teach entrepreneurs and small business owners how to develop and operate a successful business. "Anyone puffing capital into a company, whether it be debt capital from a bank or individual, or equity capital from an investor or venture capitalist, will require a business plan," he says.

The first thing most lenders ask for is a business plan, much like a personnel manager asks job applicants for a resume. And writing a well-researched business plan can be an eye-opening educational experience.

"Entrepreneurs or business owners seeking to develop and improve their management skills should focus on writing a solid business plan," says Pieczonka. "The writing of the plan is as much about the process as it is about the finished product," he says. "When you're writing the plan, it forces you to think in detail about things that might have otherwise been fuzzy in your head: operations, marketing, accounting and human resources issues.

Writing a business plan also shortens the learning curve, according to Pieczonka. "In the planning process, you see some of the speed bumps before the cars roll over them."

A well-researched business plan also serves as a feasibility study, allowing you to examine different scenarios before spending time and money implementing them. This examination helps you realize the risk and rewards involved in a particular business scenario. "It's a lot easier to figure that out by researching the plan and writing it down on paper, than by losing thousands of dollars trying to implement your plan," adds Pieczonka.

A well-researched, well-written business plan gives lenders confidence. They like knowing that business owners have a dear...