Why is a business plan important? I'd like to share a story to illustrate.

In the early days of the Roman Empire, the Romans were invaded by the Carthaginians. Hannibal brought his elephants over the Alps and invaded Italy. Separated from his supply lines in Africa, Hannibal survived for 20 years by raiding the Italian countryside.

Roman farmers were unhappy about this. One named Gaius heard about the invasions and decided it would be smart to build a fortified tower for him and his workers to hide in. Halfway through construction, he ran out of money. He had to take a job fighting for the Romans, where he later died in the Battle of Cannae, along with 80,000 of his countrymen.

Another Roman, named Kado, also saw the need for a tower to protect his workers and his grain so they wouldn't starve after the Carthaginians stole their resources. Instead of starting construction immediately, he began planning. That was the key difference.

He first drew plans for how tall the tower would be and how many bricks he'd need. Then, he calculated the cost of bricks. Since everyone was building watchtowers, brick prices had soared, but he accounted for this in his plan. He figured out the cost of labor and the cost of labor lost when his workers weren't in the fields. He also calculated the cost of artisans and craftsmen he'd need to hire separately.

As he put it all together, he realized he didn't have enough money to build the tower. He went back and reworked his plan to build a cheaper tower. He adjusted it so that only the first story was made of brick and the rest of wood. This allowed him to complete the tower and keep his workers safe.

Jesus once said, "Who would begin the construction of a tower without first calculating the cost to see if there's enough money to finish it? Otherwise, you might complete only the foundation before running out of money, and everyone would laugh at you. They would say, 'He started building and couldn't afford to finish.' Or what king would go to war without discussing with his counselors whether his army of 10,000 could defeat an army of 20,000? If he can't, he will send a delegation to negotiate peace."

So I ask you, what indie author would launch a book without counting the costs to ensure they have the money and resources to make the book successful?

A Business Plan Forces You to Plan

A business plan forces you to go through the planning process, and that is where its power lies. The business plan itself isn't magical. But creating the document forces you to ask difficult questions, and finding answers to those questions will set you up for success.

In the military, they say no plan survives contact with the enemy, but that doesn't mean planning isn't valuable. Planning is vital to success. The plan is proof that planning has taken place.

A Business Plan Makes it Easier to Receive Feedback

Plans also make it easier to get feedback from counselors to determine if your idea is sound or can be improved. Your friends, family, and fellow authors can review your plan and offer tips to make it better. They might even volunteer to help in some way. As the old saying goes, "If you want money, ask for advice; if you want advice, ask for money."

A Business Allows You to Raise Capital

Business plans can also be a way of raising capital. That's how traditional publishers secure book contracts. They call them book proposals, and the elements are almost the same. A business plan includes a financial section, whereas a book proposal includes sample chapters.

Business plans are for anything you're launching, not just new books. Anything that launches, opens, or releases needs a plan. For a new service or market, put together a plan to succeed.

A good business plan is iterative and living. You don't set it aside. Work on it as you execute your plan, and as you learn more, revise and adjust it. This will help you and your book succeed.

Up Next

Find out the different components of a business plan.