PROPOSE OF BUSINESS PLAN

            Business plan is a written document that serves as blueprint and guide for a propose business project that one intent to undertake. The information that has been gathered regarding to the project is used in the business plan to predict viability forecast success and proposed strategies to the project. It is also known as a working paper, business proposal, project paper or prospectus.

            Business plan is prepare by the entrepreneur due to many reasons. One of the reasons for preparing the business plan is to allow the entrepreneur to view and evaluate the propose business venture in the objective. The collapse of many business ventures can be attributed to the decision and planning of the entrepreneurs who rely more on emotions and gut feeling rather than rational considerations. With the business plan, the entrepreneur has solid and well-grounded information to supplement the planning and decision making process. This way, the entrepreneur has more realistic and practical business plan.

             Besides that, the reason for preparing the business plan is to study and evaluate the feasibility of the business. The business plan can be as a basic of determining the viability of the business. The information gathering and analysis that is done as part of preparing the business plan can give an early indication as to the viability of the project. Hence, entrepreneur can meet better judgment before investing in the proposed venture.

            Business plan also can be used as a communication tool to convince potential investors of the viability of proposed venture. The availability of business plan will boost the confidence of any interested parties in financial institutions, private or individual investors, suppliers and government agencies.             

             The preparation for the business plan is most important and it cannot be ignored by the entrepreneur. It is a guideline for managing the business and it is one of the reasons for preparing the business plan. In preparing the business plan, the entrepreneur has thought out and laid down the plan strategies for running the venture. when the venture become reality, the plan strategy outlined in the business plan will be an important benchmark to help the entrepreneur gauge his progress.