Why do you need a business plan?
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Why do you need a business plan?

Reason of business planPreliminary planning is useful in any case. For example, when you going to the store, you make a shopping list, at once, estimating their price for determine the required sum of money.

Business is a supermarket but in global understanding, a market in which you are simultaneously perform a function of seller and consumer.  Here you simply get lost without clear plan.

Daily changing market sometimes puts unsolvable objectives even for experienced managers, forcing them to calculate every step and again to revise strategy. To attract creditors and foreign investors, national entrepreneurs have to master the art of provisioning of correct business plan.

Why do you need a business plan?

On this question there are many answers taken in our country and abroad. However, the essence is the same, the document is a model for a future business life. It displays the information about service (product), price, we analyze the market, distribution channels are displayed, solves a question about remuneration of staff, identifies possible problems.

What kind of problem can be solved by entrepreneur’s business plan?

  1. Identify the activity.
  2. Develop assortment of services, products. Calculate costs connected with their production and realization.
  3. Determined the short-term and long-term goals, establish ways of achieving them.
  4. Think over marketing policy.
  5. Calculate the necessary staff, determine salary costs.
  6. Foresee difficulties and risks, identify ways to preventing and solve.

Neglecting business plan, inexperienced entrepreneur risks being unprepared for the future problems. Such levity is fraught with dangerous consequences for the business. That is why, even at every stable market situation, we shouldn’t underestimate the importance of planning. Each business plan is concentrate an enormous amount of organization work aimed at studying the specialization of firm, services and product, perspective. In other words, on any business plan should to present following components:

  • A full analyze reflecting all sides of the activity of an enterprise.
  • A clear project for the production of services (product).
  • Study of economic mechanisms.

So, why do you need a business plan? To be able to review the prospects and ways of development of the firm. As a result, entrepreneur will be able to identify the risks, determine the advisability of investing in the project money, time, effort and nerves. In general, business-plan is a forward-looking document drawn up for several years.

During its development, remember:

  • A document must be written in the simple language that, in addition to experts, it is also able to understand simple employees;
  • It should be concise, but informative;
  • It should be a “living” awaking the interest of a potential partner or investor.

An important moment in the preparation of a business plan is a mandatory participation of the head. It is not a secret that many Western banks and investors refuse to consider a document drawn up by external professionals.

In conclusion, the business plan in addition to the effective “internal” use by management and staff, is also have an important value for attract investors and partners.

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