- A business plan is a document designed to provide sufficient information about a new or existing business to convince financial backers to invest in the business
Purpose of a business plan:
- To clarify the idea: the process involved in creating a business plan means that the entrepreneur has to ask a number of questions about their idea. This will ensure that before starting up, the business idea has been considered with care.
- To gain finance: the plan will be used as means to show potential investors or lenders why the business will be a success.
- To monitor progress over time: can be used as a working document for the owner. Regular checks, particularly against the objectives and financial forecasts can act as an indicator as to how the business is…