When you start your new business, there is usually a history of some activity behind it.  No one just wakes up one morning and thinks they’ll start something without goods, ideas, customer base.  However, even with some of those in place, there is a need to make a plan, to ensure everything goes off in an upward tragetory.  When seeking funding for example, you may be using family funds and then need a bit of help from your bank.  They will have a defined set of rules for this and they include the absolute need to make a business plan.  It has to show potential backers or lenders that your business is viable and that you have fully costed it out to the greatest degree.  They very rarely work on the ‘wing and a prayer’ methodology.  To formulate a working business plan, start with asking yourself what your start up and ongoing costs for the first year will be;  do you have this money available in hand;  how much money must the business bring in each week and each month, every month, for it to cover personal and business costs.   Are you able and prepared to be out of pocket for a while as you build up the business.  How much are you going to charge for the products you sell or the service you plan to provide.    All very good questions and ones that must be asnwereds honestly before any funding can be achieved.