Although planning a business is a matter of an entrepreneur’s determination, a formal business plan will guide and help you in many aspects. As a businessman, you need to sketch a plan for several reasons.
This plan would be the owner’s vision of the intended business. An aspiring businessman should prepare, present and discuss a business plan, as it helps communicating the viability and prospects of the business to both financial institutions and prospective investors.
A Business Plan is a financial projection of an intended business venture. You should have knowledge of your target market along with certain other bodies of information about your business. Preparing feasibility studies and market projections before you venture into any business are mandatory. No matter the size of your business or nature of ownership – be it sole trading, a partnership, or a public limited company – you need to plan your potential share in that market, pricing, and competitive strategy, and report it all comprehensively in a business plan document.