Without doubt it is safe to say that the task of business planning is applicable to all businesses whether as a sole trader or a multinational conglomerate. The production of a business plan is needed to describe the business, its objectives, its strategies, the market it is in and its financial forecasts. It is often used as a tool for measuring the performance of the organization against that intended over a short- or medium-term period, typically three to five years. For many new businesses the business plan may be used as a tool to promote an interest in the business and to secure external funding and as such needs to be undertaken as a serious task. At the outset the production of a business plan will help the organization to:
• Describe and explain its business idea or proposition.
• Provide a structure to the short- and longer-term plans.
• Uncover any problem areas that might be lurking.
• Identify unforeseen opportunities.
• Record the financial details.
• Provide an overview of the bigger picture.
• Provide an integrated framework for all of the business ideas.
• Make the business statistically more likely to succeed.
• Identify the risks that the business may face or prevent progress.
Another view is that a business plan is vital to:
• Gaining financial support from internal and external sources.
• Helping the organization to establish ...