Essay on the Importance of a Business Plan
Entrepreneurs refer to a business plan as a living document, recounting how it grew and expanded correspondingly with their companies. A business plan serves more or less as a map for the establishment, it gives the entrepreneur and the team a standard to measure achievements, to see where they are going and whether their current direction aligns with the destination, it is a satisfying experience for any entrepreneur to see ones ideas come to life, even if it almost never happens as we stated on paper in the beginning.
Another equally important function of a business plan is to sell the business idea to a prospective investor.
A business plan guides the entrepreneur in detailing every aspect of his/her business, its product, production, market, competitors and profitability, investors can study the business plan and see through the super intricate futuristic bird’s eye view of the entrepreneur, how the business will grow and function, thus can confidently decide whether to invest or otherwise. A well prepared business plan is one of the most powerful tools in selling a business idea.
In the organization itself a business plan serves a very important purpose by informing all involved of the teams targets, strategy and tactics, the team develops understanding and work together better, knowing where they are going and what their part in the journey is.
A business plan is a crucial first step in any establishment, although the prevailing perspective is that a business plan is a complex juggling of ideas, facts and figures beyond the scope of the average entrepreneur, a business plan is simply a practical representation of any business idea.