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Describe the Purpose of a Business Plan essay
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Describe the Purpose of a Business Plan. Custom Describe the Purpose of a Business Plan Essay Writing Service || Describe the Purpose of a Business Plan Essay samples, help

A business plan is a statement that sets out the goals of the business and the means to achieve those goals. They are a detailed description of the business that states the products and/or services offered by the business, the marketing strategy, financial statements, and principles of management and the plans involved to implement them successfully (Abrams, & Kleiner, 2003). The plan will therefore be documented to incorporate all the actions and courses of action involved in the business.

For this reason the purpose of the business plan remains to be vital since it is generally used as the decision making tool for the business.The major purpose is to attract potential investors and financiers to fund the plans of the business and therefore acts a document to solicit for funding for the growth and sustainability of the business (Pinson, 2001). The funding may either be external or internal and the business plan must be very persuasive and prove the efficiency and effectiveness of the plans at hand to be implemented.

The business plan also acts as a guide for the managers which leads them in the organizing of strategies, staffing sales, since they are clearly set out in the document. It gives the rules which are guide action that do not specify time sequence (Abrams, & Kleiner, 2003). It also gives procedures with time sequence, and programs that involve all the goals, policies, rules, assignments, and resources to be used. In addition it sets out a budget that sets out the profit plan and all the expenses involved so that the funding is done appropriately and timely (Pinson, 2001).

The plans also make the funding organization aware of the chances available in the venture, the strengths and weaknesses and give all the facts and figures involved in the setting up and running the business to be able to establish the viability of the business (Pinson, 2001). The business plan can also be a tool to either identify the course of action or an alternative if the one identified is not effective. If the business plan is implemented effectively the business is destined for success.

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