Importance business plan essay

Abstract In the present document, an analysis is performed that represents the importance of a business plan within the present tendencies; It is not necessary to define the plan as well as the directives, and this entails that it is not necessary to forget the fact that each region has its own weaknesses. Many times in the business world, people can have extraordinary ideas for investment projects ranging from the creation, reinvention, improvement, expansion, etc.

Importance business plan essay

Brown et al, This assignment focusses on the role of the business plan in acquiring capital from the investors for its start-ups or expansion and also the limitations when securing those funds. Business plan is a blueprint of any business giving a detailed outline of business concept, business opportunity, competitive landscape, key to success and people who are or will be involved.

Therefore it acts as an important sales tool which can be used to borrow money or gather support to launch a new product or service. Kuratko and Hodgetts An entrepreneur, when having any idea of a business ,are afraid of writing the business plan fearing for the future. But a well documented plan provides unlimited benefits.

Arkebauer, It helps to define the in-depth analysis of the business and the strategies of how to venture with that business in the current market. A plan written on paper not only helps in identifying the potential problem areas but also helps in working out the solutions without interfacing the real world consequences.

It also helps in communicating goals throughout the organization.

Importance Of A Business Plan

If proper strategies are implemented then owners or the managers can use it as benchmark to assess the goals they have achieved and also to improve the areas of weakness. Hence it should not be limited to a start up tool but should be used continually to re-evaluate the progress of the business.

Business plan does not guarantee success but helps in reducing probability of failure. Crawford-Lucas, Apart from the above benefits, the most important role of business plan is to accomplish the vision of an entrepreneur by persuading the investors to fund them.

The financiers could be either the lenders or investors. All require a business plan to evaluate the potential of business. Lenders looks at the riskiness of the loan by seeing the payback periods and cash flow data whereas the investors are interested on the longer term potential of the business and hence they want to know what the break even points are and what will be the return of investment.

Thus the decision of the prospective funder to consider the proposal would depend on the quality of the plan supported with the funding proposal. As stated by Brown et all The important aspects are listed below: This section plays a critical role as its the first document which an investor looks and makes a quick decision on the proposals.

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It should be as concise as possible detailing all the important aspects of the business fulfilling the investors expectation. Product, history and competitors:This paper analyzes the importance of a business plan within the current trends; Hire an essay writer to get your essay done.

Importance business plan essay

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A business plan is a way of reaching a company’s goals usually a formal statement. In this statement there can be information on the background of the organisation of the company.

Asma has completed a basic business plan for her business, a business plan is used by a business to try and get other. The Importance of a Business Plan Essay Words | 3 Pages. When it comes to starting a business it is important to have Business Plan.

The value of a business . Jun 27,  · A business plan is an important tool for managing and growing your business. A well-designed plan lays out a vision of growth and the steps needed to get there. A plan is also an essential. In today’s environment, the business plan is the entrepreneur’s most important document when setting up a new business.

Without the help of a well-designed and well- presented business plan the entrepreneur will find it very difficult to express its business goals or secure financing. Essay about Importance of a Business Plan - A business plan is a way of reaching a company’s goals usually a formal statement.

In this statement there can be information on the background of the organisation of the company.

Essay on the Importance of a Business Plan