It is similar to a road map since it tells an individual what to anticipate and what alternative roads one can take to attain one’s destination. Several research studies have specified that thriving small business managers set…
Planning facilitates him to identify problems that require outside sources of information and help. The nature of markets and customer needs alter rapidly. Planning cannot forecast alteration but it helps an individual to identify it and map his business policy accordingly. Small businesses tend to either cultivate too rapidly for their capital base or too sluggishly to sustain cash flow. Planned growth facilitates him to plan his capital requirements in advance and to guarantee that funds are accessible when one needs them. A detailed Business Plan allows one to scrutinize his results against a prearranged set of objectives and performance principles (Business Planning, n.d.; Business Plan for a Startup Business, n.d.).
The rationale behind forming a business plan is that one can expect problems that are likely to take place and decide how they should be dealt with in advance. For instance, a lot of small business proprietors spend so much time ‘putting out the fires’. A business plan often helps an individual to justify his deeds. Often, one chooses to do something because it ‘sounds’ or ‘feels’ right. Preparing a Business Plan compels one to confirm the validity, or at least consider the logic behind one’s plans. Business proposal implies one’s capability and commitment. It is a remarkable document if it is well prepared. It helps us to convince the outsiders for example, lenders and suppliers that one comprehends the business. It is a long-standing management tool by which decisions can be taken for the future that best suit with the intentions of the business. The business proposal helps in scrutinizing and assessing the new business opportunities, proposes a case for finance, and portrays a lucid picture of the business and its prospect. The business objectives should be kept in mind. In the long-term, what is the intention of the business to attain any certain ...
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