Just because you're not planning to establish a multimillion dollar company with numerous branches and even more numerous staff doesn't mean that you don't need to learn how to write a business plan. On the contrary, preparing some guidelines describing your business and its purpose before you begin is essential if you don't want to correct errors and faulty judgment calls further along in the process.

If you expect your small business to prosper and grow, having a plan to take it to the next level is essential. And it's also critical for getting the money necessary to support your activities during the start-up phase. Lending institutions like to see how their money will be spent and repaid. Having a clear picture of what needs to be done and the way in which those tasks will be accomplished takes the guesswork out of progressing.

Sure, you can "wing it", but if you want to save time and money – and set your business up correctly the first time, you'll find it useful to have a roadmap to take you from point A to Z. With a smaller entity, it's even more important to use all resources wisely and eliminate wasteful mishaps.

You'll need to describe all phases of your business, beginning with the purpose and function. Identify the principle members of your organization and include their background to support the experience of your team. If you are working alone or with one key advisor, it's even more important to present relevant qualifications.

Don't forget to research your competition and mention them in your plan. What they do and how they do it certainly has an impact on the approach you'll choose. It's a good idea to also know which companies are complementary, as potential joint ventures. You might be able to share advertising or marketing.

A comprehensive marketing plan and market analysis should demonstrate who your potential customers or clients are and how you intend to attract them to your business. Small businesses without a lot of capital to spare need to be especially creative in creating the "buzz" that puts them on the map.

Follow the plan step by step, but remember that it can be modified when appropriate. Being a small business allows you the flexibility to respond quickly to changes in the market or niche that you've chosen, which is an advantage over larger corporations. Take advantage of the benefits that being small offers. You may soon outgrow them.