Business plans can act as a shield against a variety of the challenges facing small businesses. An effective plan can safeguard investment and help you spot pitfalls in advance; ease external financial problems; provide a tool to measure success; and focus efforts.

For major investments, some form of loan is likely to be necessary - and this is where a well-drawn-up business plan becomes critical. Most potential investors will insist on seeing a strategic business plan. Your business plan should be a summary of:

* What your business does
* Where it comes from
* Where it wants to go.

And you need to make it clear what timeframe the business plan covers. Where to begin? While preparing a business plan may seem a daunting task, small business owners should remember outside help is available from banks, accountants, and local business-support organizations.

The introduction should focus on the business and objectives, stating what the business does; how its performance compares with its competitors; and a list of major achievements. Set clear, realistic and challenging short- and long-term objectives, ensuring that, as a business, you can maintain and direct the momentum to achieve targets.

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