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Writing a business plan
The desire and need for business plan is constantly growing. Business plan is necessary for
every business, small or large. ‘’A business plan involves truthful thinking of the business
concepts, the opportunities, and the recipes to be successful and most importantly the team
that will be involved’’ (A. J. Baliga, D. Lewlyn L. R. Rodrigues). Business plan is a great
tool for both start-ups and business future and expansions. This technique is required to make
sure that everything in the business is in logical order, giving clear image and direction. This
essay will explain the key contents of a business plan and possible consequences of not
preparing business plan when setting up small business.
Based on study made in New Jersey 2010, impressive percentage of small businesses have
prepared business plan for start-up, which was fifty per cent of 355 also these were more
experienced businesses. Business plan helps to make day to day business decisions, for
example: there are times when a business earns high amount of money but shortages
unfortunately occur as well so the organisation must make appropriate money forecasts
(financial planning) in order to find out when exactly these deficiencies happen and minimise
the expenditures during that time, otherwise the company might have to borrow money but
they cannot always do that, so the business might even bankrupt. Companies often tend to
short-plan which can be wrong as the business must plan ahead to prevent future problems
otherwise something bad might already be happening and it is probably too late to fix the
issue. It is very useful to be ahead with company’s information.
