Unless you are applying for a grant or a business start-up loan, it is not essential to have a business plan for your new venture, but it may well be worth creating one. The main aim of a business plan is to show how you expect to set up and run your business, the projected turnover and profit you expect to make, cash flow reports and also some competitor analysis.
Creating a business plan can be a great way to keep you focused on what you need to do to get your business off the ground. You can plan how many sales you expect to make over the first 12-36 months and look back over this period to see if you are still on track.
With the competitor analysis part of the plan, you can take the opportunity to look in depth at your competition and check to see if you can compete against them on items such as timescales, costs and quality. If you find you can’t then you have some serious rethinking to do. It may be that your product is unique and therefore you won’t have any competitors, but you need to establish whether other companies will be able to sell the same or similar products to yours in the future and how you can protect your designs.