A business plan is a written document prepared by the contractor and/or its partners, which describes the goals and objectives of a business, along with the steps necessary to achieve the same. Its main function is to “force” the business owner or entrepreneur to organize his ideas about the feasibility of the business. It should be remembered that a business plan is not the same as a proposal financial or “loan application”. This can be taken from business plan since; it mainly comprises parts of a financial business plan. However, not all business plans are intended serving to support loan applications and some can be used just as operational plans.
The development of a business plan is to understand what a business plan is, it is important that student understand what it represents. A business plan is a document that is used to plan and set up a business at an early stage or not, in order to determine its strategy for the future. It is considered by many as a guide for the strategic management of a company. With this in mind, it made clear that this is the main instrument that investors use to assess whether it is worth investing money in a company or an idea. After all, the student does not need to have an already formed and implemented to have a business plan.
On the contrary, many companies originate from ideas that have been documented with a business plan. As the business plan contains a lot of information about the company (past, present, and future), as well as various information of the market, normally it is a document used to trace the action strategy from the company. According to the research of professional essay writers in future, the student must know that business plan is a compulsory document for those who want to get foreign investment and in some cases, it is also required if anyone wants to get a loan. If a person does not have money to play their idea, or simply do not want to spend their own money in this endeavor, the business plans details how the capital injection will leverage the company’s goals and increase their profitability.
Any company that will lend money will want to know how a person will maintain a cash flow that allows them to pay their debts on time, just as any investor will want money to make the business grow and increase their profits (for which consequently can also make more money).However, entrepreneurs who produced business plans are more respected than those who do not produce, because they understand its importance for the planning, management and the company’s growth.