Business Planning Flashcards
What is a business plan?
A document setting out what a business does and what it hopes to achieve in the future
Purpose of a business plan
Raise finance
Set objectives
organize the business
Advantages
Offers opportunities for planners to think analytically about their business using data that has been gathered for this purpose
Persuades investors that the business has been thought through and should succeed
Include targets which the business’s progress can be monitored. Helps managers make good quality decisions at the right times
Disadvantages
Business plan involves a lot of uncertainty and doesn’t remove the risk of starting or expanding it
Some people may not be experienced who prepare the plan or may not have the breadth of knowledge that magangers and entrepreneurs need. Inaccurate planning
A businesses environment can change rapidly - change in plan may be required.
