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Any business would need a plan to take off from its starting point. It is a mistake to proceed without a clear idea of how it intends to pursue its adjectives. Sooner or later, a business with no plan to speak of will have no business at all to speak of.
The provision of a business plan is a positive indication of right business sense since it should contain the general and specific objectives of a business. It should also contain the steps that are intended to be taken to attain the given objectives. This is one clear manifestation of a business’ determination to pursue its goals which is very important to potential investors.
Investors usually require a business plan good for 3 to 5 years. This is because, a person or a company who brings in additional capital to a business expects to realize some form of profit from the investment within this time frame. The inability of a business to provide this to a potential investor may mean the failure to get the needed additional capital.
A business plan is not only a must in new businesses. Even existing businesses would have to provide one especially when contemplating major changes in operation and policies. Plans can either focus on internal or external business matters. Since a business plan is essentially a decision-making tool, it should be able to cover all business aspects to ensure smooth business flow. This will involve taking into consideration the various business disciplines such as finance, marketing, human resource management, and operations management, among others.
About the Author:
Teresa handled two family businesses before “retiring” into writing.
Originally posted on January 31, 2013 @ 12:27 pm