Why is a business plan necessary

A good business plan can turn an idea from a total failure to a raving success.

It examines the risks and chances in your business idea.

It provides an answer to questions such as: when will the business become profitable and what profit will it show?
It serves as a sales tool for potential investors, business partners and banks.
It specifies the sum of money you will need for investment purposes and who is the right source to raise it from.
It shows objective analysis and filters exaggerated estimates.
It reflects operational aspects that concern the stages after establishing the business.
It specifies the milestones in the business' development stages.
It constitutes a work plan for implementation.
It provides an expression of variables in the macro field that include: sector developments, macro economic developments and reference to competitors.
It comprises a detailed guide from the day of establishment through to the later stages of the business.