Importance of a business plan

December 6, 2010-12-06

Why Making a business plan is important?

Why Making a business plan is important?
Imagine that you are going to bake a cake. You must have a recipe, the ingredients, thetools and at the end if you follow the recipe steps properly, you will have a delicious cake. A business works exactly in the same way , if you want to have a successful business, you will have tohave a recipe , but in this case it will be called business plan and instead of a cake , if you follow the steps , you will have a successful business.
What is a business plan? A business plan is adocument in which important features such as the product or service description, costs and suppliers are determined. This document is used to describe business goals and financing and marketing plans.A business plan has relevant information for investors and for a bank or another organization that could give a loan for a business.
What´s the importance of a business plan? Sometimes,a business plan is needed when a business is looking for a loan or for investment . The investors and banks need to know what a business owner wants to accomplish and the steps to take to thatgoals. Business plans help banks and investors to determine if a business is or not likely to succeed, based on information provided by the owner.
A business plan is not just useful for obtaining financing. Acarefully considered plan can serve as a road map to success for the business owner and company employees. It can help all involved stay on to achieve goals. What´s more , this type of plan may be reviewedwhen necessary, so the owner can continue with strategies if they are working or change them if they are not.
Parts of a business plan:
* Executive Summary: In this section the owner writes adescription of the business, the most important trends in the industry, all about advertising and promotion, projected sales and profits and education and work experience of owners and key...