Who Needs a Business Plan?

The only person who won’t need a business plan is the one who's not going into business. You don't need a plan to start a hobby or to take on a side job. But anybody beginning or extending a journey that will take significant amounts of money, energy or time, and that is expected to return a profit, should take the time to create some kind of business plan.

Business succession planning can be a daunting task under the best of circumstances, and history is littered with examples of owners who failed to step up to the challenge in a wise and timely fashion – often with disastrous consequences. Fewer than one third of family businesses survive the transition from first to second generation ownership. Of those that do, close to 50 percent don't survive the transition from second to third generation ownership. But it doesn't have to be that way. A successful business plan includes provisions for continuity. Business owners need to be aware of the consequences of failing to properly plan for the transition of the ownership from the senior generation to either third-parties or to junior generations.