What Is A Business Plan?Many people that have great business ideas do not know or think that they will not need a business plan. First of all, what is a business plan? It is an internal instrument that helps you to organize and control your business, no matter what it is about. A starting enterprise needs resources, information and techniques, no matter the field of activity and the goal. In order for an entrepreneur to know his own business and to be able to control it, he will need a business plan. It is a planning instrument that will help him plan his future investments or areas of the market that needs to be conquered. It is also a managerial instrument that will help managers to continue and follow that goal and last but not least, a business plan is a communicational instrument that will allow for finances and investors attraction.
Planning is one of the most important things about a business and it is a continuous process of identification, collection, analysis and interpretation of information that surrounds the activity of that company. The business plan needs to be a strategic plan of the organization that will include the mission of the organization, its objectives, strategies and action plans for a determined period. More broadly, any business plan must achieve a few steps:
- it has to gather all the information about the company: customers, competition, industry, manufacturing processes and operations, personnel and financial and accounting information;
- it has to analyze all the information in order to decide the current status of the company, the opportunities and threats from within and around the company and
- to use this information in future activity in order to gain profit or achieve goals.
It is very important that big and small companies alike have defined strategies not only when the company is new and has just been started but all the time when it functions on the market. The information written in the plan may change during time and this is a very important aspect for the company that will help it move forward and gain profit or competitive advantage of any kind.
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