You maybe asking yourself, 'Why do I need a business plan if I am the only person who will read it?' The notion that you will be the only one reading the business plan if a fallacy. As you go through the steps we outline, several institutions and individuals will be interested in your business plan. Let's look at several individuals who will be interested in the plan.

Lending institutions will need to review the business plan prior to extending any debt financing. They will need to see that the business is well defined and has the potential of making money. A lending institution, bank, credit union, or savings and loan, have a duty to their customers to make money i.e. collect interest payments. In the pursuit of making money, a bank must protect itself from poor or uncollectible loans.

Suppliers will also be interested in the business plan. Suppliers will be interested in the concept and potential of prosperity. In the event a supplier extends credit in the form of extended payment terms, the supplier will want to know when they will receive payment. Suppliers may be a good source of early funding through extended payment terms or purchases on consignment.