Importance of a Business Plan

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A business plan is a way of reaching a company’s goals usually a formal statement. In this statement there can be information on the background of the organisation of the company. Asma has completed a basic business plan for her business, a business plan is used by a business to try and get other business / companies to invest in their business, a business can be set up so that the business will advance in the future. In the business plan it will include things from promoting to plans of the business and who her costumers could be. A business plan can help expand your business, depending on your location, specific market and hard work there are many other elements .Businesses that use a business plan are usually more organized this will influence their growth because companies will look at their business plan. Bankers will also look at the plan to make the decision if there are going to invest in the company and trusting them that the business will lift off and bring money in to the business in the future. The business plan will help the business strategy, priorities and specific action points with the partner or significant other. Your business plan will make it easier for other investors, companies and other people that are involved or wanting to getting involved with the business making it easier for Asma. Most people assisted with business agree on this one point securing funding almost always requires a formal plan. Family, friends that invest companies usually don’t need a business plan in certain situations. When a business is first starting out it will have to keep referring back to the initial business plan, because they will have little experience in what they are doing. It is usually updated on a regular basic to ... ... middle of paper ... ...is more likely to be on a CV .This information is not relevant to a business plan. Asma should have done market research she should have primary and secondary research and put the results in the business plan along with any conclusions that she has made. She shouldn’t have anything to do with her personality because this would be for the banker to decide in an interview.in her business plan her finance needs to include information about revenue which will include what Asma setup costs will be and how much she will need to run the nursery day to day Asma will find a business plan very useful as it will force her ideas in one place and help keep her on track the business plan that Asma has produced doesn’t include enough detail to guide her through her business start-up. Her business plan has very limited finical information in it which means it will not be much use.4

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