Tell almost any would-be entrepreneur that he or she must first create a written business plan if they hope to succeed and you'll see instant fear in their eyes. Typical responses include, "What's that?" or "I wouldn't know where to start," even "That's a waste of time." Yet without putting in the time and effort to create such a plan, rarely will a new business succeed.

The basic business plan suggested here can serve as your personal road map to success as well as something to share with potential lenders or investors.

How formal should a basic, workable business plan be? Formality – endless words – contributes very little. Simplicity is much better.