A business plan is a document that will tell you, before opening your bike shop, whether or not it's a financially sound business idea. A bike shop owner has one main objective: to make a profit. Without a business plan, you'll have no concrete way of ensuring this - so it's a pretty big deal.
A business plan enables you to take a detailed look at your business model and identify exactly what steps you'll need to take to launch your bike shop - as well as how much cash is required.
The plan also gives a realistic estimate of how your business is likely to perform in its first 3 to 5 years of operation, giving you a clear path of progression as you go through the first, fumbling stages of its opening, allowing you to adjust your financial forecast as and when is needed.
You'll also (most likely) need to obtain funding. This again is where the business plan comes in handy - as it's the document with which you'll present your idea to potential investors to convince them to follow you on your entrepreneurial adventure. Whether it's a bank or a private investor, there's no two ways about it, a business plan is essential for securing the financing needed to launch your shop.
