business planning

• Purpose of business planning: 

  • Potential investors or banks use for loans to have an overview of the business 
  • Organised so that you know what goals you want to achieve 
  • To allow SMART objectives to be created 
• Advantages of a business plan is that it attracts potential investors, reduces risk, and helps to stay organised 

  Disadvantages of a business plan is that if the person has never made a business plan before than the information may not be accurate, it only shows the situation at the time the plan was produced and may not add in any future goals so to investors the business will not seem investable.