A good business plan is like a map. It shows the best path to achieving business goals.

Setting targets forces a business to identify essential key performance indicators.

Creating a business plan sets out the effective use of time and resources. It sets out how to take advantage of business opportunities. And it sets out how to anticipate problems.

Writing a business plan is the crystallisation of ideas for all divisions of the business. It provides direction to the business. It sets out why you have chosen to go in a particular direction.

The business plan is often described as a 'living document'. Its value is only realised when the plan is used, reviewed and tested regularly.

Business plans cover several functions. They are usually set specific business goals such as revenue targets, raising finance and specific programs – like marketing.

There is no standard format for a business plan. However, a good plan will include:

    a list of business goals
    a management and financial plan
    a sales and marketing plan
    an operations plan
    a human resources plan
    an executive summary.

Before you start, get some advice on business planning. Templates and tools are available from many sources to help you, including:

    business.gov.au's Business Plan Guides and Templates
    the Small Business Tool Kit which includes a step-by-step Business Planning Guide.

Don't waste time trying to create the 'perfect' business plan. Many businesses get bogged down writing huge documents that never get used. The key is to set a clear course of action that will be carried out. A brief plan, implemented completely, will be best for your business. If the plan is too complex, you may never get started.