Better Manager 7th prelims:Better Manager 7th edition

(Ron) #1

How to prepare a business


plan


WHAT IS A BUSINESS PLAN?


A business plan sets out what you or your business intends to
achieve and how you intend to achieve it in order to attract any
investment required. The plan includes financial projections of
revenue and profit based on business forecasts covering the
planned levels of sales or activity, the income they will generate
and the investment required to get the expected results. In addi-
tion, it will provide information in sufficient but not excessive
detail on how those results will be achieved.


WHY HAVE A PLAN?


A business plan may be required for any of the following
reasons:


■ to convince some person or organization, eg a bank, a finance
company or a senior executive in the company to invest in
your business or idea;


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