Business Plans - Assignment Example

Business Plan Business Plan A business plan is “any plan that works for a business to look ahead, allocate resources, focus on key points, and prepare for problems and opportunities” (Berry, n.d.). It contains the detailed plans in marketing, finance and operations of a business. It outlines the objectives of the business and how these objectives will be met. Many companies who start their business do not have a business plan because they think that it is too costly. Some people who want to start a business find it expensive because they have the notion that they need to hire a business consultant to do one (Superbcoaching .com, n.d.). Moreover, others think that there is a need to buy a business plan software.

Another reason why people shun the idea of creating a business plan is that they think that it is too complex to do (Superbcoaching .com, n.d.). These people assume that the business plan should be perfect before they can start the business. Some companies think that it is a waste of time. Instead of focusing on the start-up of the business right away, they will be bogged down with writing the plan. Creating a business plan has several benefits. The first benefit that a company can gain from a business plan is that it gives direction to the firm.

Similar to a road map, the business plan will show where the company is going and what options it can take to reach its destination or objective. Another benefit that can be gained from a business plan is that it is a valuable source of information for potential investors in the business. It makes it easier for an organization to obtain funding or possible loans from banks and private investors. A business plan also prepares the company for future problems that it may encounter. As one goes through the process of writing the plan, he is made aware of the critical aspects of the business and the various scenarios that will affect its operations.

ReferencesBerry, T. (n.d.). What is a business plan? Retrieved January 13, 2012, from articles.bplans.com: http://articles.bplans.com/writing-a-business-plan/what-is-a-business-plan/33Superbcoaching .com. (n.d.). The top 10 reasons people dont have a business plan. Retrieved January 13, 2012, from superbcoaching.com.au: http://www.superbcoaching.com.au/Articles/Top10_Bus_Plans.htm