What is a business plan?
A business plan details how a business aims to achieve its objectives. It is usually written before the business starts or when there are major plans to change the business
Setting up a business can be a risk. There may be a number of competitors and potential customers that might not like the products that you manufacture. The point of the business plan is to reduce this risk. However, this does not neccessarily mean that there will be no risk it just means that the risk will be limited.
Helping a business to succeed
The owner needs to care about all aspects of the business, the business plan allows the owner to think about all of these aspects, this gives a greater chance of success - not guaranteed success.
Importance of a business plan
If a business does not complete a business then it may identify the wrong market or the resources and staff it needs. This may be costly for the business as it may cost a lot in finding the right staff for the right job
THIS IS WHAT MIGHT BE IN A BUSINESS PLAN
- The business idea
- People who run the business
- Market research
- Objectives of the business
- Target Market