Need for a business plan

01. To make the business idea clear A business plan gives details about the proposed goods or service to be offered and its uniqueness, to the persons who are interested of the business.

02. To understand the business environment Business environment keeps on changing all the time. Changes occur in the internal environment of a business, as well as in the economic, social, political and technological conditions and the natural environment. All of these changes can be identified early through business planning.

03. To guide the business It indicates what activities should be done by each party involved in the business.

04. To indicate the future direction of the business The business plan clarifies what status the business should achieve in future.

05. To raise the necessary funds Investors prefer to put their money into profitable ventures. A business plan displays the proposed activities and expected benefits of the business. A business plan is essential for organizations such as banks when making investment-related decisions.

06. To make a good estimate of the demand The market demand is a main factor determining the success or failure of a business. It is necessary to be well aware of the competitors and substitutes, as well as their market share and strategies; and to form suitable strategies to face them. All of these require planning.

07. To identify the resources required for the business A business plan identifies the physical and human resources necessary for business activities.

08. To find out the success of the business If you forecast your business activities before starting up the business, you can see what outcome you will be getting by the end of a given period of time. If you have successfully forecasted your business plan, you can understand today whether your business will be a success or a failure in future. This will help you to face future uncertainties successfully.

09. To get an overall image of the business A business plan gives details about the various activities of the business for a given period of time in future. So it provides a clear view of how the business will be in future.


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