So, you’ve decided to go into business for yourself. Congratulations! Before you hurl yourself headlong into the arena of entrepreneurship, however, it is important you develop a viable business plan. As they say, if you fail to plan, you’re planning to fail. Depending on the type of business that you’re going to start, you may need a less or more complex business plan. Even if you don’t think that you need a formal plan, it’s important that you at least partake in some initial research to understand how you will fit into the whole legal and financial procedures.

Some of you may be wondering what a business plan entails in the first place. Well, a business plan typically lays out the goals (S.M.A.R.T. goals are best) for your business, why you believe they are attainable, and how you plan on achieving them. This is a formal statement and it’s one that many financial institutions and other agencies require in order to determine your eligibility for business loans and so forth. Without a business plan, the bank will not give you any money. Moreover, you need a business plan to properly project matters surrounding cash flow.

For more information about business plans, check out the sample plans at Small Business BC. The information is catering to businesses in British Columbia, but the general concepts apply no matter where you run your business. You can also check out the Interactive Business Planner at Canada Business. You will need an account (free) in order to use that feature.