Importance of a business plan?
1. Increases investment
Investors would need to see wether your commited and if your business idea would work.
2.Increases chances of getting a loan
A business plan will prove that your commited to your business, wether yur business idea will work and your cash flow of your business
3.May lead to entrepenuer answering important questions
Can lead to the entrepenuer to answering questions like
- How much capital is needed to start up my business?
- How many emplyees should I hire?
- What should I aim for my business to do/have?
- What products and services should be produced adn fo whom?
Contents of your business plan
Questions or topics to include in your business plan:
1. Income statment
This is basically the added value or net profit of how the revenue of your products differenced from the cost to produce the product
The amount of capital the business has to spend and where to spend it
The objectives, aims and future ideas of the business to work towards to
4.Owners of the business
The shareholders, partners and enterepenuer of the business