“If you fail to plan, you plan to fail”. Planning is an essential task in any business environment. A Business plan communicates the vision of the business owners by outlining the business processes and provides a roadmap to the desired future state. But before creating a plan it is important to understand the circumstances which necessitate a Business plan.
A person would require a business plan under the following circumstances:
- Planning to start a new business
- Expanding your existing business (Forward or Backward integration, new product development etc.)
- Incorporating changes in existing business. As a communicating tool to provide clarity among the work force.
The above-mentioned conditions are aimed at fulfilling an objective of a stakeholder. The objectives can be to become a market leader, to increase the employee productivity or to increase company’s sales volume. For these objectives to become a reality it involves wise investment decision.
A Business plan consolidates all the relevant information for a business in terms of market conditions, financial, technical aspects and various other factors and enables the decision makers to make a wise investment decision.