A business plan is a comprehensive description of the enterprise, the environment in which it operates, and how it needs to be managed in order to meet its objectives.
Whether you are a large company with an expansion project, or a start-up at the beginning of your journey, planning is an essential part of running a business. A business plan helps to plan and prepare for all aspects of the business and to utilise the necessary tools for achieving success. Operating without a business plan usually leads to wasting precious time, money and energy. A business plan is also a great motivational tool as it provides a reference point to track your progress.
The business plan clarifies perspectives on the business and its profitability, including:
market size, trends in company revenues, the capacity to repay investment expenditure, and eventually on the correctness of the adoption of strategic options. The definition of a business plan obliges the enterprise to reflect and to put necessary measures into place to better its performance.
Having a business plan will help to: