Business Plan Evaluation - Essay Example

Teacher Loco Loco Dance Club does not sell any product but instead provides service in teaching break dance, belly and ballroom dance, jazz and hip-hop. Loco Loco Dance Club is being marketed through traditional means of distributing leaflets and other marketing channels in its target market. Reviewing back the business plan, its main weaknesses are in the area of control and financials. It did not incorporate any method of control and its financial statement lack projection of income statement.

It does not also have statement of cash flow. Income statement is important because that is how we would know if the business is viable or not, or whether the business is making or losing money. Cash flow would enable the business to determine the amount of money needed to keep the business going.To strengthen the weakest link identified, methods of control should be integrated in the business plan. For example, there should be a policy control that allocated expenditures should not go over beyond 5% of the budget.

Income statement should also be included as well as the initial capital outlay so the business would know how much it would compensate before it consider itself profitable.These solutions are chosen because they would strengthen the business plan and achieve the best possible outcome. They are critical for the success of the business and ensure that results would go as plan as stated in the business plan. For example, instituting control avoid costs to overshoot could make the business inefficient and less competitive if neglected.

Incorporating more financial statements such as project Income Statement would enable the company to determine if its performance is consistent to the business plan or if it is underperforming. Cash flow is critical for start-up businesses such Loco Loco Dance Club because it prevents the operation of the business to run out of cash which could make stop its operation. If the business plan is undertaken, the recommended integration of the income statement would allow us to measure its success because it would tell whether the business is making money or not.