If I have the money, do I still need a business proposal?

Question

A friend and I are thinking of opening a small hair salon in the area. About 4 booths in size. We both just received lawsuit settlements and will use that money as start up money for the business. Do we still need a business proposal? I thought a proposal was only for the purpose of borrowing money. Please correct me if I'm wrong and provide suggestions to get started. And thanks to all who provide feedback.

Answer 1

A business plan will also help you to know if your proposed business is going to be profitable.  It will make you think about expected/projected money in and expenses (money out).  You also need to sit down and be aware of all the regulations you need to comply with, and fees for those.  If you want to be successful it's a very good idea to write a business plan.  sba.gov is a good site to make you think about things......given most businesses fail within the first 1 1/2 you need to do everything you can to ensure success!  Good luck!