Q I am self-employed and recently applied for a business grant. I was turned down because I did not have a business plan – do I really need a business plan to grow the business when I am the only one involved? I need to react quickly to opportunities and don't have time to write a detailed plan A If you want to grow a business – regardless of its size – a business plan is a definite help. Many grants and government-funded training schemes now include a business plan in their criteria for eligibility, as do banks and potential investors, to ensure that funding, loans or investments are going to businesses that are structured for growth.

This reflects the importance of having a business plan and is supported by recent research.

A study of 400 British start-up businesses has found a clear difference between entrepreneurs who have a business plan and those without a business plan.

The research, from the Cranfield School of Management and Warwick Business School, shows that having the right business plan for a new venture can mean the difference between success and failure. Professor Andrew Burke, one of the authors of the research, says that entrepreneurs are often misled to believe that planning and ' just do it' approaches ( such as the one you describe) cannot be combined, when in reality most successful businesses take the best of both approaches.

It is not just new businesses that need a plan – it is a document that should be updated throughout the life of a business to reflect changes in the market and the organisation. It doesn't have to be time-consuming and it certainly won't stunt your ability to react with speed – it will, however, ensure your reactions are in line with your aspirations for the business and highlight potential pitfalls along the way. The following dos and don'ts should help you get started. 1. Do keep it simple. A business plan does not have to be very long and complicated. It is essentially a description of the business, it objectives, how it operates, the market in which it operates and its financial forecast. It should include the following:

An executive summary – this should be positioned at the front of the document but written last. Name and address of the business, its owners and its legal status. What the business does, its aims and objectives. Details of the target market, competitor information and competitive advantage. Marketing and sales strategy, including revenue sources and pricing. Operational requirements, such as premises, equipment, staff and suppliers.

The current financial position and any financial requirements to grow. Enterprise Ireland has a free downloadable business plan template on its website:

( www. enterprise-ireland. com/ StartBusiness/ What+ is+ a+ HPSU/ BusinessPlan. htm) that can be adapted for your own use. 2. Don't just file it. A plan is nothing without action and once you set out your strategy for growth this should be a guide for how you run your business; for example, in determining how you prioritise your time and in budget allocation. If an activity looks of interest from a general business perspective, but is not directly related to your business plan, then it may not be worth the time and money involved. 3. Do update it regularly. In the current market it is advisable to plan 18 months to two years ahead, rather than three to five years as was commonly recommended up until recently. If there are any major changes in your market or business – as highlighted in your monthly accounts – update your business plan accordingly. 4. Don't over-reach. Make your business plan ambitious, yet realistic. You might want to consider a series of scenarios and how they might impact the business; for example, if there was a continued drop in revenue, or a supplier went out of business. This kind of forecasting can help you put in place contingency plans for dealing with external influences. 5. Do take your time. One of the benefits of drawing up a business plan is that it forces you to stop and think about your business. You may need to set aside a weekend, as, like most self-employed people, you may find it difficult to take time away from serving paying customers to write a plan. Don't get bogged down in the finer details – start with the big headlines and objectives and add the detail afterwards.