AS business studies purpose of a business plan

The purposes of a business plan are that:

– Provides a focus on the business idea - is it really good and why?

– Helps clarify thoughts and identify gaps in information

– Provides a logical structure to thinking about the business

– Encourages the entrepreneur to focus on what the business is really about

and how customers and finance-providers can be convinced

– Helps test the financial viability of the idea - can the business achieve the

required level of profitability

– The plan provides something which can be used to measure actual

performance

– A business plan is essential to raising finance from outside providers -

particular investors and banks

The above list will prove helpful…