The formal Business Plan: Is it needed?

The main objective behind this website is to compile my thought and research on internet marketing into structured categories. Once compiled, I will use this site as the backbone to build my formal business plan of launching an internet media company. Active blogging in a considerable time commitment, and it begs the question: is a formal business plan even needed?

The Formal Business PlanBusiness plan

As an aspiring entrepreneur, I believe every business should start with a formalized business plan. Without a concrete plan, that “side project” that consumes enormous amounts of time and energy is merely a hobby. A true business must possess a formalized structure, and have a realistic and obtainable plan for future growth. It must also address issues like asset protection, capital financing, liability protection, and exit strategies. Above all, a true business creates systems, that can be scrutinized, adapted, optimized, and ultimately transfered to a new owner. Without these considerations, that sideline project people call a “business” ends up becoming a second job.

Why am I building a formal business plan?

My goal is to create an internet media company. Well, what does that mean? I want to create a company the acquires, maintains, publishes, and optimizes internet content. Many concepts of internet marketing will be incorporated into my business plan. To achieve my goal, I want to raise capital by offering equity to investors. In order to successfully sell my concepts to potential investors, it is essential that my ideas are well documented and thoroughly researched. A formal business plan will help convey my concepts to my investors.

Additionally, I hope that my postings on this site will help others with similar ideas. A unique benefit to publicly posting my business concepts is that I will hopefully engage in dialogs with my readers that will help me fine tune my ideas. I want my ideas challenged and criticized; as that will ultimately build a stronger final product.

But I can start without a formalizes business plan!?!

Yes many people, especially internet marketers, start their business without formalized plans. This works for many people, yet I believe they are still selling themselves short if they are not thinking strategically. Here is the challenge: can you leave your business for two weeks and still maintain your income? If not, you have created a job for yourself. If you can, then I would venture to guess that you have invested time into creating processes and systems within your business. My goal is to create these processes and systems from the onset, and sell these concepts to investors to “jump start” the growth phase. This website will chronicle the journey, and hopefully help others along the way.

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