PURPOSE OF THE BUSINESS PLAN

Business plan is a written document that serves as business 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 for the project. It is also known as a working paper, business proposal, project paper or prospectus.

Business plan is prepare by the entrepreneurs due to many reason. One of the reasons for preparing the business plan is to allow the entrepreneur to view and evaluate the proposed business venture in the objective. The collapse of many business ventures can be attributed to the decision and planning of the entrepreneur 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 a propose business venture. 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 make better judgment before investing in the proposed venture.