Business Entrepeneurship
... What is the purpose of a business plan and why is it an essential first step for a start-up firm? The purpose of a business plan is to act as the management and financial blueprint for a business start-up and profitable operation of a business venture. A business plan explains specifically how a business will function and details how a business will be capitalized, managed, and marketed. ... html) The process of writing a business plan is indispensable because it forces the entrepreneur to sit down and think. It also requires him or her to take an objective, critical look at the business. In addition, the process offers the following benefits: • It is an easy way to communicate the business idea and goals to decision makers, employees, and consultants. • It outlines the strengths of the business. ... • It identifies other ways for the business to grow. ... • It is a tool that can be used to measure the performance of the business and its managers. ... cfm Reasons for writing a business plan include: • Support a loan application • Raise equity funding • Define objectives and describe programs to achieve those objectives • Create a regular business review and course correction process. • Define a new business • Define agreements between partners • Set a value on a business for sale or legal purposes • Evaluate a new product line, promotion, or expansion. ... Have to convince them that the business proposal is sound.