1) A business plan is critical for startups as it helps business owners formulate goals and strategies, and familiarizes potential investors, lenders, and clients with the business concept. 2) While the business plan is primarily developed at startup, it should be updated annually as part of the budget planning process to account for changes in revenues, expenses, and market conditions. 3) Very small businesses like hot dog stands may not need a formal business plan, but for most businesses planning is important, especially as they grow in size and complexity.

1. How Important is a Business Plan to a Business?
Katherine: We're beingjoinedbyourfriendPaul Contrisof Welcov.He'sgoingtotalkwithus about
some businessquestionsthatI've beengiven.Iwanttosay welcome backPaul,howare
you?
Paul: Good. How are youtoday Katherine?
Katherine: I am doingwonderful.Iwantto justjumprightintoit. How importantisa businessplan
to a business?
Paul: Well,Ithinkit'scritical.It helpsnotonlyfamiliarize peopleyoumightbe needinginyour
businesslikelendersorprospectiveclientsorinvestors,helpsgetthemfamiliarwith
whatyour businessisabout.Ithinkitreallyhelpsyouasa businesspersonformulate
your goalsandyour plansand yourstrategiesforgettingthere.Ithinkit'sprettycritical.
Katherine: Is thisa documentthatyou do justinthe beginningplanningstagesordoesitneedto
be updatedperiodically?
Paul: Typicallythe businessplanisjustatthe beginningbutIguessina wayyou doupdate it
each,typicallyanannual ...You can do it more frequentthanthat,butwhenyoudo
your annual budgetprocessIthinkthatis one wayof updatingthatnow you've seen
what'shappenedinthe firstyearand you're goingto predictwhathappensinthe next
yearand that wouldinclude everythinginvolvedwiththe business.Yournew revenue
sources,whatyouthinkthe existingrevenue sourcesare goingtodo, whatyour
expensesare goingtodo. Larger companiesthey'lldoinadditiontoannual budgets
they'll domore strategicplanningprogramswhere theylookatmarkettrendsand
maybe reviewyourmissionstatementandthattype of thing.
I thinkthe businessplan,assuch,reallyissomethingthat'sa benefitatthe beginningof
the businessandthenfromthere onyoudo your annual budgetsandmaybe strategic
planningprograms.
Katherine: Okay.Do you thinkthatthere are anybusinesseswhowill notneedabusinessplan?
Paul: I suppose if you're goingtoopenup a hot dogstand on the cornerof a street
somewhere youprobablydon'treallyneedabusinessplan.If you're goingtoopenupa
landscapingservice ...There'salotof small businessesthatdon'tdobusinessplans.I
wouldn'tsaythat ...Maybe it'snot that critical forcertainsmallerservice businessesbut
once you getto a certainlevel orsize of businessIthinkit'sreallyhelpful.
Katherine: Mm-hmm. Okay.What I've alwaysbeenasked,peoplewanttoknow how youget
aroundthe people youwanttobe around.You probablyare familiarwiththe phrase or
the term "Hang outwiththe people youwantto be like."How doyoujust be around
those people?Myquestiontoyouis:What's the bestwayto get aroundthe right
people whenyoustartoutinbusiness?Whenyou're new youdon'treallyknow.
Paul: I thinkitdependsonwhattype of businessyou're goinginto.If it'sanykindof

2. Paul Contris August 2016 Interview Business Plan and Continuing Education Page 2 of 2
establishedtype of businessandmaybe you're goingtostartan insurance agencyor
maybe you're goingto doa franchise of some sortof Panera breadcompanyor
somethingthat...Most businesseshave associationsthatyoucan tap into.If you're
goingto become a realtoror whateverthere are associationsthatyoucan ...They'll
have ongoingfunctionsandthattype of thingand youcan attendthose Ithinkmeeta
lotof people. It'sjustbasicnetworking.
Katherine: I see.
Paul: It dependsonthe businessyou're goinginbutyouwouldhave totry tofindout
whethertheyhave anykindof groupsof people thatbusinesssponsorsandhasregular
meetingsandthattype of thing.
Katherine: Mm-hmm.Associations,networking,that'show yougetaroundnew people.
Paul: Right.
Katherine: What classes,if any,shouldabusinessownertake?
Paul: I've got to say,I wouldcertainlyrecommendsomebasicaccountingclasses...
Katherine: Okay.
Paul: ...It reallyishelpful if youcanunderstandhow yourmonthlyfinancial statementswork.
You don't have tobe a superaccountant or whatever,butif youcan understandthe
basicsof an income statementandabalance sheetthatwould be helpful.Dependingon
whatyour businessisif you're goingtobe involved...If there are a numberof
employeesthenamanagerial class,amanagementclasswouldbe veryhelpfuland
maybe a marketingclass.Those are kindof the general onesasfar as businessclasses
that come to mind.I'm sure there isothernon-businessstuff toothatmightbe helpful.
An Englishclass...
Katherine: Understandingyourbooks,of course,butunderstandingourmoneyisveryimportant,I
see that.
Paul: Yeah.
Katherine: What we're goingto dois we're goingto wrapup and we're goingtocome back next
monthwithyouagain talkingmore business.Paul,tell themhow togetintouch with
yououtside of this needstobe said.
Paul: Our website iswww.welcov.com.
Katherine: Awesome.Until nexttime.Have agoodday.
Paul: Thank youKatherine.