Purpose of Business Plan

• • control finance, to get a realistic idea of the financial implications of a business idea and future finance needs
• • establish objectives, especially directions for the future
• • set targets, which can encourage better-directed and purposeful work
• • define actions, priorities and the timetable for actions
• • analyze performance, and correct weaknesses
• • assess needs, in terms of human and other resources
• • test assumptions, especially if the idea is realistic
• • identify strengths and weaknesses
• A business plan has two purposes:

  1. to bring in extra resources
  2. to help us manage resources better.
• Business plan is designed to influence the external environment and the internal environment.
• Business plan is both outward-looking and inward-looking.
• A business plan is used to review the operations of an organization, to draw up a list of necessary changes in a coherent and easily understood form, and to get the agreement and support of everybody required to bring about or live with those changes.
• objectives are spread out through the years
• business plan is not a one-time use because you should keep coming back to it and make revisions or changes as needed