Perhaps you can already picture the kind of business you want to run - the who, what, where, when, why and how much. Basically, a business plan captures all these details on paper.

What do I need to know?

If you are like a lot of young entrepreneurs or entrepreneurs of any age for that matter, preparing a plan might not seem like an appealing idea. Once you have a rough business plan worked out in your head, you probably want to get going. But when you stop to really think about it, you'll realise that writing a business plan may help to avoid nasty surprises (and expenses) by forcing you to think about all aspects of your business.

If you seek financing from a bank or other investor, they will want to see your business plan. The business plan process will make you more confident with your idea and could even help to improve your idea.

A business plan does not have to be lengthy, with colour charts or a fancy cover. A typical business plan simply answers some basic business questions. The rest of this section will help you prepare that all important plan.