What determines if you need a business plan or not?

Question

My husband and I are writing a series of children's books with other related items to follow. Do we need a business plan if we are trying to pitch to publishers and agents? What about to retail stores? Is this strictly needed if you are borrowing money?

Answer 1

You should always have a business plan, no matter how small an operation or complexity. If you don't have a plan you won't be able to get funded by anyone reputable. Most accountants and lawyers you'll work with will either ask that you already have one or will charge you to make up a business plan. You'll need at least the accountant to run any kind of operation because of tax complexities. Publishers and agents may not want it necessarily but they don't take that much time to complete.

Answer 2

If you are going to borrow money, you definitely need a business plan . Who ever is interested in giving you a loan wants to know your business and financial and the business plan will explain exactly that.  

Think about it.  A business plan will talk about your goals, mission, marketing plan, sales strategy, management experience, competition, cash flow, profit and loss, break-even phase, and it will show a balance sheet.  

Therefore, you should have a business plan for your own use and to show to anyone who wants to know about your business and finances.  Sometimes you should customize the plan to the needs.  A publisher will be interested in customers and sales.  A bank will be interested in management, competition and profit.  You as the owner will want to concentrate on goals, mission, marketing, profit and loss.

I always recommend anyone starting a business to write a business plan. They will never regret it.