No business can thrive for long without a business plan. The entrepreneur will find it hard to pin down his successes if he has no identified goals to achieve. The business plan is his mission statement, his roadmap to success.

An evaluation of the commercial viability of the venture, complete with a comprehensive description and analysis of future prospects constitutes an ideal business plan.

Even if you managed to function so far with mental plans and clever ideas that sprouted on the spot, a written outline will help you zero in on the formula that worked. It will show you where you went wrong, and suggest corrective measures.

You will learn to focus on your objectives, as they will stare back at you in black and white.

Smart entrepreneurs often get the expertise of trade consultants, lawyers and bankers to draft an all-comprehensive business plan. While seeking loans, these plans are flaunted to impress banks and other lending agencies.

Make your business plan honest and realistic by including both long-term and short-ended goals. Often, future projections go awry due to the dynamism of a fast-changing economy. Modify the business plan as you go along, incorporating the needs of the changing times. Keep it in tune with the progress of your business; tweak it to take care of adversities.

Set a timeline, and plan the capital requirements in line with anticipated sales and profits. Go for conservative estimates. Over ambitious plans often get discarded midway.

Constant review of strategy and consistency of goals will help you ward off competition. The line of customers will not shrink as you approach them in a systematic fashion. A coherent and dynamic business plan can be your best guide.