You need a business plan if you are applying for a business loan. Most banks require it, and even those that do not strictly require it, expect it. They expect it to be a summary of the business, with some predictable key points.
You need a business plan if you are working with partners. The business plan defines agreements between partners about what’s going to happen.
You need a business plan to set a value on a business for sale or legal purposes or to sell a business.
You need a business plan to communicate with a management team. How do you know where you are in business without establishing where you started and where you intended to go? How can people commit to a plan they can’t see?
You need a business plan if you are looking for business investments. Investors look to the business plan to define and explain your business. They plan will not get you the investment, but not having a plan will likely mean that you will not get your investment.
Independence: When you own your own business, you do not have to follow orders or observe working hours set by someone else.
Satisfaction: Turning personal skills, hobbies, or other interests into your own business can be very satisfying.
Financial reward: Through hard work, the sky can be the limit. Countless small businesses have grown into large companies that have produced fortunes for their owners.
Self-esteem: Knowing you created something valuable can give you a strong sense of accomplishment, thus heightening your self-esteem.
Cons
Business failure: Many small business fail. You risk not only loosing your money but also the money invested in your business by others.
Obstacles: You will run into problems that you will have to solve by yourself. You may face discouragement from family and friends.
Loneliness: It can be lonely and even a little scary to be completely responsible for the success or failure of your business.
Financial insecurity: You are not guaranteed a set salary or any benefits.
Long hours/ hard work: You will have to work long hours to get your business off the ground.
