In: Operations Management
Explain the purpose and importance of the business plan 1 PAGE
Answer:-
A business plan essentially is a crucial tool which a business uses to manage and grow its business.It lays out a path for growth together with the steps that are crucial to grow a business.
A business plan serves different purposes. Among them:--
?Maintaining focus:- It contains all product information, manpower and financial estimates plan for the business
?Securing financing:- A good business plan helps in getting financing from investors and lenders
?Fueling ambitions:- A business plan acts as a motivator to achieve goals
?Enlightening executives:- Can help executives see the business vision clearly.
Besides, a business plan acts as a communication instrument for attracting not only financing but also good staff and managers that can see a business grow. Additionally, a business plan defines the aims or the intent of a business over a specific time. This is important as it permits the business owner to comprehend what should be done at a specific time to see the business move forward.
A business plan has the following importance:-
?It increases clairity in allocation of resources
?It creates a marketing road-map for the business
?It can be used to secure and retain talent
?It provides structure and management objectives to a business.