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Stuart
Why do businesses need a business plan?
                     
 




Billy
Rating
Just as a builder uses a blueprint to ensure that a building will be structurally sound, the process of creating and writing a "blueprint" for your business -- called a business plan -- will help you determine whether your business will be strong from the start. Without a business plan, you leave far too many things to chance.

A business plan contains a description of your business, including details about how it will operate, a section on market research and marketing strategies, an evaluation of your main competitors and several financial forecasts.

Reasons to Create a Business Plan

Writing a well-thought-out and organized business plan dramatically increases your odds of succeeding as an entrepreneur. The benefits of a business plan include:

* determining whether your business has a chance of making a good profit
* providing an estimate of your start-up costs, and how much you'll need to invest or finance
* convincing investors and lenders to fund your business
* providing a revenue estimate (by defining your market -- who your customers will be -- and the percentage of the market you can expect to reach)
* helping your business make money from the start by devising a effective marketing strategy
* helping you compete in the marketplace (through an analysis of what your competition lacks), and
* anticipating potential problems so you can solve them before they become disasters.


Paul L
Because failing to plan is planning to fail


bugaboo
It helps to focus attention on the fledging business, and also persuades financial institutes to provide backing..


sassy101
There are several reasons, the first is so that you can put your vision onto paper and use it as a guide. It includes specific details on finances, ownership and plan of action. It is used as a guide and refrence in the future.

It is also used when applying for a start up loan or for investors to review. It is to give them all the required information they would need to make an investment in your company.

It is not necessary to have a buisness plan, but I have always found them helpfull.


flyingconfused
It provides a focus to the business and creates goals.


LADY__LUCK
Rating
Businesses dont 'need' them but banks do if they are going to lend you money to prove you know what you're talking about


Joshua R
A business plan allows people to set targets and strive to reach measurable goals. It can be likened to having a personal plan for your future. It is easier to strive for success if you have measures along the way. That way tactics can be developed and you can evaluate the effectiveness of your approach.


Cherrypicker
It helps to clarify aims and objective, outcomes and milestones.

Without a business plan the purpose of the business can be lost in the everyday workings of the company.

Also, in terms of finance, banks or funders would not be prepared to lend money without a business plan that sets out the goals of the company.


jamesdean2002uk
not exactly a budding business person are you -



...its so the company and directors have a direction to take the company forward...( growth ..then profit)


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