A business plan is a tool used by a business that serves as its manual in its day-to-day operation. Small businesses may not have one as they might not have time to do it or just simply do not appreciate its importance. Some may not see its worth and it is also time-consuming to prepare since you really need to sit down and invest time in writing it. However, statistics says that people who prepare business plans for a proposed project are most likely to pursue putting up the business than those who don’t.
THREE REASONS WHY YOU NEED TO PREPARE A BUSINESS PLAN
1. To Raise Capital
Most banks and other financial institutions require a business plan for loan evaluation. These help them see the projected sales and revenue, the return on investment, and the capacity of the business to pay the loan. You cannot just present an idea to the bank without estimated figures that show business viability.
2. For Business Expansion
In order to assess the feasibility of the proposed business expansion, you need to prepare a business plan as a decision guide if it is worth the risk and timely to expand. It will give you the vision of what the future may look like. And based on the numbers, if it is showing promising projections, you will be more confident to pursue your plan and will be ready to take a calculated risk for the business expansion.
3. To Assess the Weaknesses of the Business
By preparing the business plan, you will not only evaluate the financial feasibility but the business as a whole. You will look into the market, technical, management aspects which will provide you a picture of what needs to be improved in the business operation.
To have someone go through the process with you, feel free to visit https://garcialellith.wixsite.com/freelancerlellith and we can talk about your business in detail.
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