Every new entrepreneur has many tasks that they must master in order to have a shot at successfully running their own business. They must be a visionary. They must be a salesperson. They must be a motivator. They must be a decision maker. They must be all these things and more.

When I first investigated what it would take to run my own business I found myself getting stuck on a step that is very important, but usually creates more of a barrier to getting a business started than it ever should. The step that I’m referring to is the one where you create a business plan.

A detailed plan should be the cornerstone of any important journey or project that we undertake. It’s no different for the creation of a business. A business must have a detailed plan that can set the purpose and direction for the venture. The concept is simple enough, but I find that many people have found themselves intimidated at the prospect of putting together a plan for their business. And who wouldn’t be? If you type in the phrase “business plan” in Google there are hundreds of links to sites that pitch books and software for creating the “perfect” plan.

The fact is that the process should be anything but intimidating, especially if you’ve really thought out the details of your business. So I want to take a few moments of your time to demystify the business plan and help you to feel confident about creating a good plan for your business.

First off, I want to confirm the purpose of the kind of business plan I’m talking about. This type of plan indicates the purpose and sets the direction for the business. This is a document that we can refer to frequently as the business gets underway. This is a living document that is subject to change and probably will be changed at some point. This type of business plan differs from a plan whose purpose is to attract investors or loans for a business. I call that a business propsal.

Many times, people will confuse a business plan with a business proposal. A business proposal is a tool to help an entrepreneur gain support (financial and otherwise) for a business. The style and format of business proposals will differ depending upon the intended recipient of the document. Preparing a business proposal tends to be more time consuming since you might need to create three different proposals to seem attractive to three different investors.

The business plan needs to come before the proposal, as the plan will eventually be a major part of your proposal. I like to break ideas down into parts to make them more palatable and we’ll do the same with the business plan.

Part I. The objective of the business - What product(s) or service(s) will you offer? Think of as many details about the product or service when describing it.

Part II. The beneficiary of the business - Who are your customers? Are you selling to businesses or to the general public? Describe, in detail, your customer base. What is it that they need? Why are they going to want what you’re selling? How will you reach your customers?

Part III. The delivery of the business - How will you produce and deliver your product or service to your customer base? Will you have a store? Will you sell via the internet? Will you do both? Think about how other people do it and determine their level of success with different methods.

Part IV. The finances of the business - How much money will you need to get started? How much money can you expect to make every month? What will your recurring expenses be? How much will you charge for your product or service? Getting the answers to these types of questions requires a lot of research on the business your heading into. Use the internet to get information from other businesses offering similar services.

If you have these four areas covered then you should be ready to answer the most important question of all: Is this business idea worth moving forward? If your answer is yes, then you should take the time to organize your information and put your plan into a format that makes sense and can be easily updated in the future as plans change.

And by the way, the plan will change!

Once you’ve documented your plan, then you are ready to execute your business. This step may also include contacting potential investors or partners, which necessitates the development of a proposal. Otherwise, you’ll be well on your way to the unlimited possibilities in the life of a business entrepreneur.

Remember this. Don’t let the act of creating the plan stop you from moving forward with your business ideas. Do some research, collect your thoughts and get your ideas on paper. Don’t worry about the format as much as the value of the content. By heeding this advice you’ll be able to distinguish the great ideas from the not so good ones and greatly enhance your chances for business success.