by Stacey Hubbard

Created on: March 06, 2011

Developing Business Plans

 What is a business plan?

 A business plan is the financial marketing and production requirements of a new business start up which includes the strengths, aims and strategies of the business.

 What is the purpose of a Business Plan?

 There are several purposes to writing a business plan these are: they show how a business can be run and expanded in order to gain financial help and or support as it helps to persuade lenders and or investors to give the entrepreneur finances as well as showing what the business wants to achieve and how it plans to do this, another purpose of a business plan is it helps the entrepreneur to clarify and outline the initial idea, it will also give other people from outside the business an idea of how it is already/ is going to be run, it will increase the chance of success and it also helps the individual to monitor and check the progress of the business.

Who needs a business plan?

Creating a business plan is very useful for any business and so it is recommended that anyone who is starting a business writes one as this makes the individual think carefully and look closely at what they are doing or what they are planning to do especially as there are many people who rush into setting up a business without actually thinking about what they are planning to do or really looking at their idea from every angle. By using a business plan you are able to look at the idea very closely and in quite a lot of detail from many different points of view, this can then lead you to being able to establish any problems that may arise in the setting up of the business or that may occur in the future and find solutions to these.

 The entrepreneur can be helped quite considerably by the business plan as it helps them to clarify what needs to be and when it needs to be completed. Also by writing a business it can then be shown to other employees within the organisation or potential employees in order to help them understand what it is the business is trying to achieve and how they are planning on achieving it..

Other advantages to using a business plan?

 A business plan can also help an individual or business as it enable the firm to measure its success against it plan objectives and goals. The plan can also be shown to any potential investors and or lenders as they will be able to see what the firm hopes to achieve. By looking at the financial projections the lender will be able to see if the business

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