What is a business plan and do I need one?

When you start a business or want to grow your company, you need to have a plan for how the business is to succeed. When creating this plan, you need to think about your company’s legal obligations; your business finances and the goals for your business. business plan

Creating a business plan can be a daunting task, but the Law Offices of Mike Ross can help. Our San Jose small business attorneys have extensive experience advising startups, new businesses getting off the ground and established companies that want to grow. Call today to schedule your free consultation and learn more about how we can help you to make your business dreams a reality.

The Importance of a Business Plan

Creating a business plan is essential for any company that is just starting or that wants to expand. Having a business plan is important because:

  • The plan helps you to define the company’s mission statement so you and all of your employees are on the same page about what your company will do and where it is going.
  • The plan helps you to secure financing. Banks and investors can see what your company’s goals are and how you plan to achieve them. This can inspire more confidence and get people excited about investing.
  •  The plan helps you to set goals and to define the steps needed to achieve them. You need to ensure that you are making strategic choices with the long-term growth and success of the company in mind. A business plan helps you to see the big picture.

Your plan does not have to be a long and formal document, although it can be. The Small Business Administration indicates that the basic components of the plan should include:

  • A current and pro forma balance sheet for your business.
  • An income statement.
  • A cash flow analysis.
  • A list of company goals.
  • Information about allocation of resources.

When creating a business plan, you can think carefully through the steps that are needed to make your business profitable. This will help you to identify potential pitfalls and obstacles so you can create a plan to overcome them. You can also identify some of the important steps that your company needs to take to begin or continue operations.

For example, if you want to hire employees and include this goal in your business plan, this will highlight the need to take the right legal steps to begin hiring. You will need to obtain an employer identification number (EIN) from the Internal Revenue Service and learn about your obligations for paying payroll taxes and providing benefits.

An experienced San Jose small business lawyer at the Law Offices of Mike Ross can assist you in understanding the legal aspects of growing or operating your business and can help you with the creation of a comprehensive business plan. Call today at 408-223-9100 or contact us online to schedule a consultation and learn more about how we can help your startup business to get on the path to success.

Mike Ross

Having been a general counsel of a prominent local companies for over 25 years and an attorney at Orrick, a large international law firm, Mr. Mike Ross possesses a rare combination of expertise, insight and value, resulting in a deep appreciation for how clients want legal services delivered: quickly, cost-effectively and with a focus on results.
Mike Ross

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