The Goals of a Business Plan
Someone writing a business plan is most likely doing it for one or more of the
following reasons:
1. Obtaining funding from investors.
A business plan is utilized to source financing since its contents center around
how firms prosper, break even, and generate a profit. This document is a
technique for an entrepreneur to demonstrate to potential investors or lenders
how their cash will be used and how it will help the firm develop.
Before giving over their money, all banks, investors, and venture capital
companies will want to see a business plan, and investors normally demand a
10% ROI or more on the capital they invest in a business.
As a result, these investors want to know if – and when – they'll get their
money back (and then some). They'll also want to learn about the process and
strategy for achieving the company's financial objectives, which is where the
context offered by sales, marketing, and operations plans comes into play.
2. Creating a strategy and goals document for a corporation.
A company strategy should cover all bases.
Business plans may be dozens or even hundreds of pages long, allowing its
authors to clarify what a company's goals are and how it aims to attain them.
3. Making a company idea legitimate.
Everyone has a wonderful business concept until they put pen to paper and
find it's not quite viable.
A business plan is a technique for a prospective entrepreneur to demonstrate
that a business idea is viable.
As entrepreneurs document their go-to-market strategy, capital requirements,
and projected return on investment, they will certainly encounter a few hitches
that will cause them to second-guess their tactics and measurements - which
is exactly what the business plan is for.
It guarantees that an entrepreneur has all of their ducks in an order before
introducing their company concept to the public, and it reassures readers that
whomever developed the plan is serious about the idea, having spent hours
thinking about it.
3. Making a company idea legitimate.
Everyone has a wonderful business concept until they put pen to paper and
find it's not quite viable.
A business plan is a technique for a prospective entrepreneur to demonstrate
that a business idea is viable.
As entrepreneurs document their go-to-market strategy, capital requirements,
and projected return on investment, they will certainly encounter a few hitches
that will cause them to second-guess their tactics and measurements - which
is exactly what the business plan is for.
It guarantees that an entrepreneur has all of their ducks in an order before
introducing their company concept to the public, and it reassures readers that
whomever developed the plan is serious about the idea, having spent hours
thinking about it.
4. You received an A in your business class.
Speaking from personal experience, you could be here looking for business
plan ideas for your Business 101 class project.