Do I need a business plan?

(FSB Online) -- Dear FSB: Do I have to have a business plan to get to investors?

- Harold Edwards, Indianapolis

Dear Harold: Think of your business plan as your company's resume. You may not need a resume to land a job, but your chances of getting one are slim without it. "Unless you're a business star, with known credibility and lots of investor contacts, you should have a business plan done before you contact investors," says Tim Berry, president of Palo Alto Software and principal author of its Business Plan Pro program. "A business plan won't get you investors but it's almost certain that you can't get them without one. It's a classic example of a 'necessary but not sufficient' condition."

Like a resume, your business plan should outline the key components of your venture. A good one will contain a description of your service or product, an analysis of the market in which it will compete, a description of the company and its management, your marketing strategies, and the financials you project for the next few years.

For more advice on writing a business plan, check out the Small Business Administration's module, "Write a business plan." And for inspiration, read about our most recent business plan contests, "Battle of the Business Plans" (2006) and "Killer Startups" (2007).