Business planning is not just a useful way of setting goals and objectives that you aim to achieve.
It is common practice for new small businesses to write a business plan. One of the main reasons for business planning is that you are able to produce a document that can be used to convince potential investors that your business is a viable financial investment.
Business plans help you to identify whether your small business is actually going to work or not. Business planning forces you to conduct a lot of research into the market that you will be entering. It sometimes becomes apparent during the course of this research that your business is unlikely to be successful. Although it is very disheartening to abandon your small business idea, it would be pointless to start a business which is destined to fail. On the bright side, you can always start planning a new idea!
The business plan will hopefully be a roadmap to success for your new small business. However, remember that business plans can make very boring reading for potential investors. Although an investor will eventually need to the figures that support your arguement, it is important that they are sold on the concept of your business as quickly as possible.